ASB Proposes Amendments to Financial Instrument Disclosures
The Accounting Standards Board (ASB) has issued for public comment proposals to improve information disclosed about the fair value of financial instruments and liquidity risk. These proposals are based on an exposure draft issued by the International Accounting Standards Board (IASB) in October 2008 as part of its response to the credit crisis.
The Exposure Draft (ED) ‘Improvements to Financial Instrument Disclosures’ proposes amendments to Financial Reporting Standard FRS 29 ‘Financial Instruments: Disclosures’. These proposed changes are necessary to maintain convergence with International Financial Reporting Standard IFRS 7 ‘Financial Instruments: Disclosures’.
The ED proposes two principal changes:
The comment period closes in 60 days on 30 January 2009. The shorter than usual comment period is necessary to ensure that UK GAAP remains consistent with equivalent International requirements and that UK companies are given sufficient time to comply with any changes the Board makes.