What is IAS 39 Financial Instruments Recognition and Measurement?

What is IAS 39 Financial Instruments Recognition and Measurement?

IAS 39: Financial Instruments: Recognition and Measurement was an international accounting standard which outlined the requirements for the recognition and measurement of financial assets, financial liabilities, and some contracts to buy or sell non-financial items.

Does IAS 39 still exist?

IAS 39 requirements for classification and measurement, impairment, hedge accounting and derecognition are withdrawn for periods starting on or after 1 January 2018 when IAS 39 is largely superseded by IFRS 9 Financial Instruments.

What IFRS 9 covers?

IFRS 9 is an International Financial Reporting Standard (IFRS) published by the International Accounting Standards Board (IASB). It contains three main topics: classification and measurement of financial instruments, impairment of financial assets and hedge accounting.

What is the AG7 of IAS 39 financial instruments?

The following views were discussed: AG7 of IAS 39 Financial In­stru­ments: Recog­ni­tion and Mea­sure­ment applies to floating rate financial in­stru­ments and states that re-es­ti­ma­tions of cash flows alter the effective interest.

When did international accounting standard IAS 39 become effective?

International Accounting Standard IAS 39 Financial Instruments: Recognition and Measurement January 2010 (incorporating amendments from IFRSs issued up to 31 December 2009 with an effective date no later than 1 January 2010) IMPLEMENTATION GUIDANCE

When is a non financial contract within the scope of IAS 39?

Contracts to buy or sell non-financial items are within the scope of IAS 39 if they can be settled net in cash or another financial asset and are not entered into and held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity’s expected purchase, sale, or usage requirements.

What are the requirements for hedge accounting IAS 39?

We present the mechanics of applying IAS 39’s requirements for hedge accounting, starting with the entity’s risk management policy, working through the necessary designation and effectiveness testing, and culminating with the accounting entries. A summary of the issues addressed is given at the start of this section.