CFM16005 - Accounting for financial instruments: IAS 32 and IAS 39: what's new
Current position on accounting standards
This guidance reflects the position on the relevant accounting
standards as it stood in November 2005. Further developments to the
international standards or related UK GAAP will be added to this
page.
There have been a number of amendments to IAS 32 and IAS 39
since they were issued as revisions in December 2003. These are
summarised, as follows.
IAS 39
- March 2004, Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk –CFM16315.
- December 2004, Transition and Initial Recognition of Financial Assets and Financial Liabilities.
- April 2005, Cash Flow Hedge Accounting of Forecast Intragroup Transactions – see CFM16275a.
- June 2005, The Fair Value Option – see CFM16120a.
- August 2005 Financial Guarantee Contracts (also amends IFRS 4) – see CFM16240.
IAS 32
- August 2005, IFRS 7 Financial Instruments and Disclosures, superseding the disclosure requirements in IAS 32 – see CFM16330.
- August 2005, IAS 1 Presentation of Financial Statements amendments regarding Capital Disclosures – see also CFM16330.
Other than the use of fair value option the EU has yet to
endorse the above amendments.
Likewise, in the UK, there have been amendments or proposed
amendments to FRS 25 and FRS 26 since their original issue in
December 2004. These are as follows.
- April 2005, Exposure draft to extend scope of FRS 26, i.e. to all companies (other than those reporting under the FRSSE) with effect from 1 January 2007, and to also incorporate the recognition and derecognition provisions of IAS 39, again with effect from 1 January 2007 but with earlier adoption permitted. The ASB has deferred its decision on implementing the scope extension for the meantime.
- October 2005, Amendment to FRS 26, incorporating the changes to IAS 39 noted in a. to e. above; a. was incorporated into the original FRS 26.
- In its June 2005 update of its Technical Plan, the ASB stated it intends to implement IFRS 7 into UK GAAP, having issued as FRED 33 in July 2004, with effect from 1 January 2007 but with early adoption permitted; the current disclosure requirements in IAS 32 will be withdrawn.
- December 2005, issue of FRS 29, implementing IFRS 7 (see f. above)
