794
Views
8
CrossRef citations to date
0
Altmetric
Original Articles

IAS 39: Underlying Principles

Pages 21-26 | Published online: 08 Feb 2011
 

ABSTRACT

There has been much recent debate about the merits of certain aspects of the IASB's recent improvements to IAS 39 Financial Instruments – Recognition and Measurement. Many have sought changes to IAS 39 and lengthy discussions have taken place to determine whether proposed changes are appropriate. These discussions have often focused on the practical effects of the proposed changes – an aspect that is certainly worthy of in-depth consideration. However, the IASB has also focused discussions on whether proposed changes are consistent with the principles underlying the standard. This article seeks to highlight those principles underlying the recognition, measurement and hedge accounting aspects of IAS 39, and their consequences for the resultant accounting requirements as a means to enhance understanding of the reasons why the IASB may find it difficult to accept certain proposed changes.

Notes

1. The only exception is for derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair value cannot be reliably determined (see IAS 39, para. 46(c)).

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.