The Committee of European Securities Regulators (CESR) has published its letter to the International Accounting Standards Board (IASB) on Financial Instruments: Classification and Measurement.
CESR has also written to the European Financial Reporting Advisory Group (EFRAG) regarding EFRAG’s draft comment letter on the IASB’s Exposure Draft “Financial Instruments: Classification and Measurement”. Both letters voice a number of concerns regarding IASB’s handling of the project to replace IAS 39. These include:
- The decision to divide the project into three phases.
- Areas of divergence between the IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles in the United States).
- The intention not to allow under any circumstances an entity to reclassify a financial asset or liability between the fair value and amortised costs categories.
- The proposed delay in mandatory adoption until 2012.
Both letters also contain a list of answers to the questions set out in the IASB’s Exposure Draft.