NEWS RELEASE 01/27/12
IASB and FASB Seek to Reduce Differences in Classification and Measurement
Models for Financial Instruments
London and Norwalk, CT, January 27,
2012—The International Accounting Standards Board (IASB) and the
Financial Accounting Standards Board (FASB) today agreed to work together to
seek to reduce differences in their respective classification and measurement
models for financial instruments.
The discussions will form part of the
FASB´s ongoing redeliberation of a proposed Accounting Standards Update on
financial instruments, which was originally issued in May 2010. The IASB will
consider these discussions as part of its project to undertake limited-scope
changes to IFRS 9, Financial Instruments, issued in November 2009 and
amended in October 2010, resulting from its ongoing work to develop a new IFRS
on insurance contracts and the feedback received on application of IFRS 9 to
particular instruments.
The boards will work together with the objective
of more closely aligning key aspects of their classification and measurement
models.
The boards will explore these key aspects jointly, and then
decide whether to issue proposed amendments to IFRS 9 and U.S. Generally
Accepted Accounting Principles (U.S. GAAP), respectively.
IASB Chairman
Hans Hoogervorst said:
"When IFRS 9 was introduced in 2009 we said that
further amendments might be required once the direction of travel on insurance
contracts became clear. We are now at that point.
"At the same time, this
limited-scope review now presents an ideal opportunity to align IFRS and US GAAP
more closely, in this important area of financial reporting.
"We will
proceed with caution, recognising the investment that many jurisdictions have
made in preparing for the introduction of IFRS 9 in 2015."
FASB
Chairman Leslie F. Seidman said:
"The boards have been urged to converge their
standards on financial instruments. Today's decision to work together on key
differences—which represent the most significant remaining differences between
the decisions reached to date—is responsive to stakeholders in the US and
abroad.
"The boards will share the feedback they have received on their
respective decisions and strive to develop a more closely converged approach
that addresses those concerns.
"The boards will continue to develop a
common approach on impairment of financial assets, which is being handled as a
separate work stream. As part of their project on financial instruments, the
FASB is proposing enhanced disclosures about interest rate risk and liquidity,
which under IFRS are covered by IFRS 7, Financial Instruments:
Disclosures."
Press enquiries:
Mark
Byatt, Director of Communications,
IFRS Foundation
Telephone: +44 (0)20
7246 6472
Email: mbyatt@ifrs.org
Christine Klimek, Senior Manager, Media Relations
Financial
Accounting Foundation
Telephone: +1 (203) 956-3459
Email: clklimek@f-a-f.org
Notes to editors
About the
IASB
The IASB was established in 2001 and is the
standard-setting body of the IFRS Foundation, an independent, private sector,
not-for-profit organisation. The IASB is committed to developing, in the public
interest, a single set of high quality global accounting standards that provide
high quality transparent and comparable information in general purpose financial
statements. In pursuit of this objective the IASB conducts extensive public
consultations and seeks the co-operation of international and national bodies
around the world. The IASB has 15 full-time members drawn from 11 countries and
a variety of professional backgrounds. By July 2012 the Board will be expanded
to 16 members. Board members are appointed by and accountable to the Trustees of
the IFRS Foundation, who are required to select the best available combination
of technical expertise and diversity of international business and market
experience. In their work the Trustees are accountable to a Monitoring Board of
public authorities. For more information visit www.ifrs.org.
About
the FASB
Since 1973, the US Financial Accounting Standards
Board has been the designated organization in the private sector for
establishing standards of financial accounting and reporting. Those standards
govern the preparation of financial reports and are officially recognized as
authoritative by the Securities and Exchange Commission and the American
Institute of Certified Public Accountants. Such standards are essential to the
efficient functioning of the economy because investors, creditors, auditors and
others rely on credible, transparent and comparable financial information. For
more information about the FASB, visit its Website at www.fasb.org.