IASB Amends Two Financial Instruments Standards


In response to the global financial crisis, the International Accounting Standards Board (IASB) amended two of its standards to more closely align with U.S. GAAP. The amendments to IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 7, Financial Instruments: Disclosures, permit the reclassification of some financial instruments. The amendments to IAS 39 introduce the possibility of reclassifications for companies applying International Financial Reporting Standards (IFRS), which were already permitted under U.S. GAAP in rare circumstances. Companies can implement the reclassification amendments to IFRS from July 1, 2008.

The European Union (EU) adopted the IASB’s amendments to IAS 39 and IFRS 7 on Oct. 15, just two days after their release by the IASB.

In addition, the IASB said it would undertake the following:

  • Continue to ensure that any IFRS guidance on fair value measurement of financial instruments in markets that are no longer active is consistent with U.S. GAAP.
  • Work closely with FASB to develop a common approach to issues related to the valuation of financial assets and liabilities resulting from purchases made through the U.S. Emergency Economic Stabilization Act of 2008 and any other similar programs internationally, if and when these programs are implemented.


For more information about the IASB’s response to the credit crisis, see www.iasb.org/credit+crisis.htm.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.