Financial instruments: Introduction
The IASB’s accounting requirements for financial instruments are regarded by many as some of the more difficult to understand. There are many likely reasons for this, including the fact that it is such a broad topic encompassing some of the more complex contracts entities enter into. In addition, the requirements have been subject to a process of almost continual change over the last fifteen years or so and are dealt with in a number of different standards and other pronouncements.
The following are the standards which deal primarily with the accounting for financial instruments:
- IAS 32 – Financial Instruments: Presentation;
- IAS 39 – Financial Instruments: Recognition and Measurement;
- IFRS 7 – Financial Instruments: Disclosures; and
- IFRS 9 – Financial Instruments.
In addition a number of interpretations address the requirements of these standards, including:
- IFRIC 2 – Members’ Shares in Co-operative Entities and Similar Instruments;
- IFRIC 9 – Reassessment of Embedded Derivatives; ...