2008-10-15 Amendments to IAS 39 and IFRS 7

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This Newsletter describes the recent amendment by the IASB of the standards on reclassification of financial assets, IAS 39 and IFRS 7.

IAS 39 and IFRS 7 Amended

 On 13 October 2008, the International Accounting Standards Board (IASB) agreed to amend IAS 39, "Financial Instruments: Recognition and Measurement", to allow the reclassification of certain financial assets previously classified as "held for trading" or "available for sale" to another category under limited circumstances. Various disclosures are required where a reclassification has been made. Derivatives and assets designated as "at fair value through profit or loss" under the fair value option are not eligible for this reclassification.
Amendment
241 KB Amendment — October 2008 (424 KB)
Download the full PDF.
Canadian GAAP This amendment to IFRS does not, in and of itself, affect Canadian GAAP. However, we do expect that the Accounting Standards Board will be considering whether a similar amendment to Canadian GAAP is appropriate.
Comment Period and
Effective Date		 Given the urgency of the issue, due process has been suspended and there will be no comment period. The amendment has an effective date of 1 July 2008. Any reclassification of a financial asset in periods beginning on or after November 1, 2008 shall take effect only from the date when the reclassification is made.