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IAS 39 replacement project
View this page in: Magyar A new standard is being issued to replace IAS 39The IASB is moving rapidly to replace IAS39 with a significantly different standard, the IFRS 9, during 2010 as a response to the global financial crisis in accordance with the recommendations made by the G20. Exposure drafts came out in stages this year and phase one of IFRS 9 on classification and measurement was issued on 12 November 2009.
Possible implications of IFRS 9:
Classification and measurement - More financial instruments may be measured at fair value than currently, although that will largely depend on the financial instruments the entity holds or issues and on the entity’s busines model. Many government bonds and plain vanilla corporate bonds would be considered to have basic loan features. The standard can be early adopted on any day after 12 November 2009.
Impairment – The IASB issued an exposure draft on the expected loss
model on 5 November 2009 in contrast to the current ‘incurred loss’ model. The IASB will continue to clarify certain aspects of the measurement objective. This includes point-in-time versus through-the-cycle-estimates, expected value versus most probable value and the use of entity specific versus market data.
Hedge accounting – The new standard is expected to replace fair value hedge accounting with an approach that is similar to cash flow hedge accounting, simplify the existing cash flow hedge accounting model and address general hedge accounting before considering the implications on portfolio hedge accounting.
Expected timetable:
| Project stage | Exposure draft | Finalisation |
|---|---|---|
| Classification and measurement | 14 July 2009 | 12 November 2009 |
| Impairment | 5 November 2009 | 2010 Q4 |
| Hedge accounting | 2010 Q1 | 2010 Q4 |
Early adoption is permitted.
More information:
