FRSC Invites Comments on Proposed Amendments on Embedded Derivatives

The Financial Reporting Standards Council (FRSC) invites comments on an exposure draft issued by the International Accounting Standards Board (IASB) on proposed amendments to IFRIC 9 and IAS 39: Embedded Derivatives.

The proposals respond to requests received from those taking part in the recent round-table discussions organized by the IASB and the US Financial Accounting Standards Board (FASB) to clarify the requirements in IAS 39, Financial Instruments: Recognition and Measurement, and IFRIC 9, Reassessment of Embedded Derivatives.

Participants asked the IASB to act in order to prevent any diversity in practice developing as a result of the amendments made to IAS 39 in October 2008 to permit the reclassification of particular financial assets. The proposals would require all embedded derivatives to be assessed and, if necessary, separately accounted for in financial statements.

The IASB invites comments on the proposals by 21 January 2009. Due to the limited comment period, comments may be sent electronically through the 'open for comment' at www.iasb.org. The exposure draft is available on the IASB website from the 'open for comment' at www.iasb.org. It is also available on the PICPA website (www.picpa.com.ph) from the FRSC/PFRS folder, under Exposure Drafts.
PICPA