Proposal to improve the derecognition requirements for financial instruments

The IASB published an Exposure Draft to improve the derecognition requirements for financial instruments. Derecognition was when an entity removed a financial instrument from its financial statements.

This occurred if the entity no longer controlled a financial asset or no longer had an obligation to settle a financial liability.
The IASB was also proposing to enhance disclosure requirements, especially in situations where an entity continued to have an ongoing involvement in a financial asset that would be derecognised under the proposals. The additional disclosures would allow users to make a better assessment of the risks associated with such an asset.

 

http://www.iasb.org/News/Press+Releases/IASB+proposes+improvements+to+derecognition+       requirements+as+part+of+review+of+off+balance+sheet+risk.htm     
31 March 2009