The Accounting Standards Board (ASB) has today issued an amendment to FRS 26 ‘Financial Instruments: Measurement’ with the aim of keeping the text of the UK Standard in line with that of the International Standard IAS 39 as part of the ASB’s strategy for convergence with International Financial Reporting Standards (IFRS).
The amendment has the effect of implementing in full in FRS 26 the following amendments to IAS 39:
transition and initial recognition of financial assets and financial liabilities;
cash flow hedge accounting of forecast intragroup transactions;
the fair value option; and
financial guarantee contracts and credit insurance.
The ASB has also incorporated transitional provisions from amendments to IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’ so that UK entities adopting FRS 26 are subject to the transitional requirements that parallel those for first time adopters of IFRS.
See full Press Release.
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