Exercise C12-3 What are three projects currently on the active agenda that are being addressed by the IASB? What is the timetable identified for milestones on each of the projects? “The first project is IFRS 9: Financial Instruments (replacement of IAS 39)” (IFRS Foundation and the IASB, 2012: Financial Instruments). To simplify the requirements for financial instrument classification and measurement in November 2008 this project was added to the IASB’s active agenda with the objective of improving financial statement usefulness for users. The project is being conducted in three main phases. Phase I - Classification and measurement, the IASB published IFRS 9 Financial Instruments which covers the classification and measurement of financial assets on November 12, 2009. This phase was completed by the board on time to allow, but not require, early application for 2009 year-end financial statements. The requirements for classifying and measuring financial liabilities were added to IFRS 9 on October 28, 2010. The Board decided to consider making limited modifications to IFRS 9 on an expedited basis November 15, 2011. The board issued a mandatory effective date of IFRS 9 and transition disclosures in December of 2011, which defers the mandatory effective date of IFRS 9 to annual periods beginning on or after 1 January 2015. The Board also amended the transitional provisions to provide relief from restarting comparative information and introduced new disclosures to help users of financial statements understand the effect of moving to the IFRS 9 classification and measurement model. Phase II – Amortised cost and impairment of financial assets, with the objective of improving the usefulness of financial statements for the decision making users by improving the measurement of amortised cost, consisting mainly of the provisions for losses on loans, and the credit quality of financial assets. Phase III - Hedge accounting, with the objective of...
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