In october 2010 requirements with respect to the

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Unformatted text preview: ber 2009 the IASB published the first chapters of IFRS 9 Financial Instruments, which will supersede the requirements of IAS 39 Financial Instruments: Recognition and Measurement on the classification and measurement of financial assets. In October 2010 requirements with respect to the classification and measurement of financial liabilities and the derecognition of financial assets and financial liabilities were added to IFRS 9. Most of these requirements have been carried forward without substantive amendment from IAS 39. However, to address the issue of own credit risk some changes were made to the fair value option for financial liabilities. The effective date of IFRS 9 is periods beginning on or after 1 January 2013 but an exposure draft, open for comment until 21 October 2011, requests views on whether the effective date should be pushed back to 1 January 2015. IFRS 9 includes two primary measurement categories for financial assets: amortised cost and fair value. Other classifications, such as held to maturity and available for sale, have been eliminated. The classification and measurement requirements for financial liabilities are generally unchanged other than a change to the treatment of changes in fair value as a result of own credit risk. 2011 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2011 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. Impact of IFRS: Oil and Gas 21 IASB's review of financial instruments accounting may result in significant changes in accounting The IASB continues to work on elements of its comprehensive financial instruments project, most notably hedging and impairment. In November 2009 the IASB issued Exposure Draft Financial Instruments: Amortised Cost and Impairment, with supplementary proposals in January 2011 relating to the impairment of finan...
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This note was uploaded on 12/03/2012 for the course ACCOUNTING 102-1132 taught by Professor Accountinggroup during the Fall '11 term at Al-Quds University.

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