The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret, and apply. In response to this concern, the International Accounting Standards Board has published for public comment a discussion paper, Reducing Complexity in Reporting Financial Instruments. The discussion paper analyzes the main causes of complexity in reporting financial instruments and proposes possible intermediate approaches to address some of them, including amending or replacing existing reporting requirements. This document is the first stage in a project which aims to replace International Accounting Standard 39, Financial Instruments: Recognition and Measurement, with a principle-based standard. The discussion paper also sets out the arguments for and against a possible long-term approach that would use one measurement method for all types of financial instruments within the scope of a financial instruments standard.
The discussion paper is available for comment until September 19, 2008 at iasb.org.
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