In this paper we will discuss about the recent financial instruments projects run by the International Accounting Standards Board, an accounting standard setter situated in the capital of the United Kingdom, London. In 2008, it has started three projects regarding financial instruments.
The International Accounting Standards Board (ISAB) is an independent accounting standard setter situated in the capital of the United Kingdom.
It took over the responsibility of setting accounting standard from its parent body International Accounting Standards Committee in 2001. In February 2008, it has started three long-term projects related to financial instruments.
1) De-recognition of Financial Instruments: This projects identifies the requirements to de-recognize the financial assets. Two more projects will be running concurrently with this project.These are, Recognition and Measurement of Financial Instruments and the other is Classification of Liabilities and Equity.
2) Distinction between Liabilities and Equity: The main aim of this project is to improve the transparency of financial reporting for the financial instruments by making it more understandable. The ISAB is running this project jointly with Financial Accounting Standards Board (FASB).
3) Replacement of IAS 39 Financial Instrument: This project aims to minimize the complexity while reporting the financial instruments.
Last Updated on : 1st August 2013