Financial Instruments

The Boards have divided the project into three areas: 1) classification and measurement, 2) impairment, and 3) hedging.  The FASB will probably re-expose their decisions on classification and measurement in early 2012; impairments will probably be re-exposed later in 2012.  With respect to hedging, there is still too much work to be done to predict [...] Read more > >

Are AFS Securities Tested for Impairment Anymore in IFRS?

In the old IAS 39, Financial Instruments: Recognition and Measurement, unrealized gains and losses in available-for-sale securities were recognized in OCI. However, if an impairment loss occurred for that AFS security, the cumulative loss recognized in OCI was reclassified from equity to profit and loss (paragraphs 55(b) and 67-70). Moreover, impairment losses recognized in profit and [...] Read more > >

FASRI Roundtable: Doron Nissim, Columbia University

 Even if you were unable to attend Hal’s session last week, please plan to join us for the upcoming Roundtable with Doron.       Participation (PLEASE NOTE DIRECTIONS FOR PARTICIPATION HAVE CHANGED):  To participate in the FASB Roundtable, 1)  go to http://intercall.webex.com anytime after 2:00 pm (New York time) on Tuesday, October 7.  2)  Type [...] Read more > >

Financial Asset Impairment

Roundtable discussion reminded me of a post by Cathy Shakespeare on good vs bad book.  Just this week, some groups in my Theory class were assigned to analyze the FASB and IASB “Supplemental Document” that she cites.  One group is to explain the proposal.  The other group is to highlight the comment letters.  I will [...] Read more > >

Leisenring: IFRS 9 Abuse "Inevitable"

Somehow I ended up on the mailing list of Risk.Net, which hails itself as “The world’s leading monthly magazine dedicated to the risk management and derivatives industries.”  In this week’s top story, headlined “Abuse of revised IFRS standards “inevitable” – IASB’s Leisenring“, Jim is quoted as expressing concern about using management intent to determine how [...] Read more > >