IASB proposes improvements to financial instruments accounting

On 14 July the IASB published an exposure draft of proposals to improve financial instrument accounting for public comment. It can be found on the IASB website. It is open for comment until 14 September 2009.

"The proposals form part of the IASB’s comprehensive review of financial instrument accounting. The proposals, which the IASB believes will significantly reduce complexity and make it easier for investors to understand financial statements, address how financial instruments are classified and measured. The proposals also answer concerns raised by interested parties during the financial crisis (for example, eliminating the different impairment approaches for available-for-sale assets and assets measured using amortised cost). The IASB plans to finalise the classification and measurement proposals in time for non-mandatory application in 2009 year-end financial statements."

FRC Chief Executive Argues Against Changing the Fundamental Purpose of Accounting

On 16th July Paul Boyle, FRC Chief Executive, argued in a speech against proposals to use accounting as a public policy tool to reduce pro-cyclicality. He also challenged the proposition that accounting measures that show volatility should be adjusted to create an impression of stability. The full text of the speech is available on the FRC website.

Walker Review

Sir David Walker's interim report on corporate governance in UK banks has been published and the full text is available on the Treasury website, as is a biography of Sir David.