The International Accounting Standards Board (IASB) has announced proposals which could mean banks must declare their profits and losses from financial instruments under two measurement systems.
Requests were made at the recent roundtable debates over fair value to clarify the requirements in IAS 39, Financial Instruments: Recognition and Measurement, and IFRIC 9, Reassessment of Embedded Derivatives.
The proposals announced today [December 22nd] would require all embedded derivatives to be assessed and separately accounted for in financial statements, if necessary.
Chairman of the IASB Sir David Tweedie said of the October amendment relating to the reclassification of financial instruments: "Issuing that amendment without normal due process always carried the risk of unintended consequences, and these proposals seek to clarify the application of that amendment to embedded derivatives."
Meanwhile, the Financial Accounting Standards Board has decided to drop a little-reported revision to its accounting rules for derivatives, reports Financial Week.
According to the news provider, the organisation had planned to simplify the rules, known as FAS 133, to eliminate the differences between them and their counterpart, IAS 139 of the International Financial Reporting Standards (IFRS).
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