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.
31 March 2009