The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) last January 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 US Generally Accepted Accounting Principles (US GAAP), respectively.