FASB, IASB to Work on Classification and Measurement of Financial Instruments
/As part of the ongoing effort at reporting convergence between FASB and IASB, the Boards will look at the issue of financial instrument classification and measurement. The Journal of Accountancy has a brief article on topic: An excerpt is shown below:
FASB and the International Accounting Standards Board (IASB) are working together to reduce differences in their respective classification and measurement models for financial instruments.
The boards announced Friday that they will explore these models jointly, then decide whether to propose amendments to IFRS and U.S. GAAP.
These discussions will take place as part of FASB’s ongoing reconsideration of a Proposed Accounting Standards Update (ASU) on financial instruments. The Proposed ASU, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities—Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815), was originally issued in May 2010. The IASB will take the discussions with FASB into consideration in its project to make limited changes to IFRS 9, Financial Instruments, which was issued in November 2009. The IASB’s project was amended in 2010 as a result of its ongoing work to develop a new IFRS on insurance contracts and feedback received on how IFRS 9 applies to particular instruments.
Here's the link to the article: FASB, IASB to Work on Classification and Measurement of Financial Instruments.
