Dataline: Financial instruments classification and measurement - An update on the FASB's tentative approach to be exposed in Q1 2013 (No. 2012-21)

  • Print-friendly version
Dataline / In depth 12/07/2012 by Assurance services
Dataline: Financial instruments classification and measurement  - An update on the FASB's tentative approach to be exposed in Q1 2013 (No. 2012-21)

At a glance

Classification and measurement is an important part of the FASB and IASB’s joint project on financial instruments. This Dataline provides a summary of the boards' decisions that is based on the project summaries posted on their websites, our observations of their meetings, and our understanding of their intent.

Classification and measurement is an important part of the FASB and IASB’s joint project on financial instruments. Prior to this year, the boards worked independently, made varying levels of progress, and reached different conclusions on this topic. The IASB finalized amendments to its classification and measurement standard, IFRS 9, in 2010, but the FASB continued to redeliberate its 2010 proposal.

In 2011, the IASB decided to consider further targeted amendments to IFRS 9, after it delayed the effective date of the standard to 2015. This provided an opportunity for the FASB and IASB to achieve a more converged solution. They have now agreed on proposed changes that will broadly converge the approach for debt investments.

The FASB expects to issue a revised exposure draft in the first quarter of 2013 for public comment. The board will likely ask for feedback on the amount of time needed to implement the changes before deciding on an effective date for the final standard. The IASB issued an exposure draft of its proposed changes to IFRS 9 in late November 2012 with a proposed effective date of January 1, 2015. The exposure draft has a 120-day comment period.

This Dataline provides a summary of the boards' decisions that is based on the project summaries posted on their websites, our observations of their meetings, and our understanding of their intent.