IASB details steps taken in response to global financial crisis

The International Accounting Standards Board, as part of its response to the global financial crisis, has taken a series of actions to address recommendations made by the G20 leaders last month. These relate to:

Improved accounting for off balance sheet items
New disclosure requirements related to impairment
Acceleration of efforts to address broader issues of impairment on a globally consistent basis
Ensuring consistent treatment of accounting for particular credit-linked investments between US generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs)
Ensuring embedded derivatives are assessed and separated if financial assets are reclassified
Considering fully other issues related to financial instruments, including the fair value option, raised at the recent series of round tables in London, New York, and Tokyo.

The decisions taken by the boards follow earlier action:

an IASB amendment to permit reclassifications of financial assets under certain circumstances (October 13),
proposals to enhance disclosures of financial instruments (October 15),
publication of guidance for the application of fair value in illiquid markets (October 31), and
the establishment of a joint FCAG, chaired by Harvey Goldschmid, a former commissioner of the US Securities and Exchange Commission, and Hans Hoogervorst, chairman of the Netherlands Authority for the Financial Markets. This group will meet several times in the first quarter of 2009.

For more information on the IASB’s response to the financial crisis, please refer to http://www.iasb.org/.