Financial instruments accounting deadline eased

THE INTERNATIONAL accounting standard setter has eased the dates for companies to meet new requirements of accounting for financial instruments.

Amendments to IFRS 9 have been issued by the IASB, which make the mandatory effective date 1 January 2015, rather than 1 January 2013.

There will also be relief from the requirement to restate comparative financial statement for the effect of applying IFRS 9. The relief was originally intended only for companies that chose to apply IFRS 9 prior to 2012.

Transitional disclosures will instead be required to help investors understand the effect that IFRS 9 will have on measuring financial instruments.

IFRS 9 would allow some assets to be held at cost and some at fair value – the so-called ‘mixed model’.

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Fiona Westwood of Smith and Williamson.