FRSC Invites Comments on Proposed Amendments on Investments in Debt Instruments

The Financial Reporting Standards Council (FRSC) invites comments on an exposure draft issued by the International Accounting Standards Board (IASB) on proposed amendments to IFRS 7: Investments in Debt Instruments.

The proposed amendments to IFRS 7, Financial Instruments: Disclosures, would require entities to provide additional disclosures on all investments in debt instruments, other than those classified in the fair value through profit or loss category.

The proposals would require an entity to state in tabular form the fair value, amortized cost and amount at which the investments are actually carried in the financial statements. The amendments would also require an entity to also disclose the effect on profit or loss and equity if all debt instruments had been accounted for at fair value or at amortized cost.

The proposed amendments follow discussions with participants in a series of public round-table meetings on the global financial crisis organized by the IASB and the US Financial Accounting Standards Board (FASB).

The IASB believes that the proposed disclosures would allow greater comparability between investments in debt instruments held with and by different entities, and so enhance investors’ confidence in the financial markets. The FASB is making similar disclosure proposals.

The IASB invites comments on the proposals by 15 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.