IASB Proposes Change to Financial Instrument Standard
A slight change could be coming to the International Accounting Standards Board’s (“IASB”) financial instruments standard. On Wednesday, the IASB announced a proposed amendment to International Financial Reporting Standards (“IFRS”) 9, Financial Instruments, which would require assets to be calculated either at amortized cost or at fair value with changes disclosed under other comprehensive income. The proposed amendment is intended to determine interest in permitting a measurement change for certain financial assets with prepayment options.
IASB research staff members plan to move quickly to issue the proposal for public comment by the end of April. If approved, a final amendment would be released in October.
IFRS 9 is effective January 2018.