PracticeConsultingDerivatives cloud debate

Derivatives cloud debate

Accounting standard-setters at their meeting last week in Kuala Lumpur were bogged down by financial instruments and derivatives.

After seven days’ debate, the International Accounting Standards Committee board agreed an interim draft on derivatives, but only in principle. IASC staff will take in amendments and send out a new draft in the next few weeks. To speed the approval process, members will vote on the exposure draft by post, said IASC technical director Liesl Knorr.

The derivatives standard is the last and most controversial element in the IASC’s programme to deliver a core set of accounting standards to the International Organisation of Securities Commissions by November.

As well as debating the short-term exposure draft, the board voted to set up a committee to liaise with the writers of a more detailed, long-term standard.

‘The agenda was so large that lots of items were deferred until July,’ said Accounting Standards Board chairman and IASC board member Sir David Tweedie. UK technical experts are concerned the US-style interim standard will cramp the long-term version. ‘IOSCO is a pain in the neck, because it is diverting us from what we should be doing,’ said Tweedie.

Final standards on discontinued operations and impairment were approved in Kuala Lumpur. As a result of the second vote, the ASB will bring out its impairment standard within the next month, he added.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer