This IFRS newsletter reports on the IASB’s July 2015 discussions on financial instruments.
The IASB plans to issue a second discussion paper on its macro hedge accounting project before publishing an exposure draft.
As a first step, at its July 2015 meeting the Board approved the staff's proposed scope and approach for identifying the information needs of constituents.
The Board also made further progress on its project on financial instruments with characteristics of equity.
For more detail on these discussions, read Issue 25 of our IFRS Newsletter: Financial Instruments.
Completion of the IASB’s macro hedging project is likely to be a number of years into the future, following the Board’s tentative decision to undertake extensive and fundamental further research before issuing a second discussion paper.
“The likely end-point for mandatory adoption of IFRS 9’s new general hedging model remains some years away given the Board’s plan to issue a second discussion paper on macro hedging.”
During the July meeting, the Board also approved the staff’s proposed scope and approach for identifying the information needs of constituents. These needs may include information about risk exposures of companies that do not undertake dynamic risk management activities.
The staff presented their analysis of the types of assessments that users of financial statements might make, and the features that are relevant to them.
They recognised that users make different assessments of financial position and financial performance depending on their information needs. This presents a challenge to the Board, in ultimately having to choose a single classification model that would be applied consistently.
The Board did not make any decisions during this meeting. However, Board members generally agreed with the staff’s analysis.