Osmosis And Diffusion Ap Lap Report

9 Financial instruments IASB Agenda



Summer 2007, the financial crisis began with what I call all the crisis of subprime

Very quickly the global financial system will end up entangled in a crisis without precedent. The crisis intensified in 2008 quickly raises the issue the financial statements as of 31/12/2008.

A problem? Yes, a big problem because large sectors of the financial system since the tremendous progress made in the convergence of accounting standards globally adopted IAS 32, IAS 39, IFRS 7 and the amendments thereto for presentation, information provided, the classification and valuation of financial assets and financial liabilities.

This implies that the financial statements of 2008, the fair value option for the evaluation (total or partial) of assets and liabilities should be applied and consequently impaired assets under the deficit being experienced by the financial system.

The fear of the impact of losses from impairment tests on the results of financial institutions already in trouble, will not fail to present the method as responsible for aggravating the crisis. Not only politicians but also by experts in finance and accounting.

Thus, the International Accounting Standards Board (IASB), the International Federation of Accountants (IFAC) and the Financial Accounting Standards Board (FASB) will be regularly challenged on the applicability of the method in the case of illiquid or inactive market as well as developing a guide for application of the method.

The IASB will undergo a considerable pressure without accounting regulators in Europe to introduce an option for European banks re-classification of certain financial assets so they are not obliged to assess such assets at fair value the statement of accounts for 2008.

Maintaining the successive adoption of IAS / IFRS in the EU was at stake when the deal. Under pressure the IASB Chairman then seemed tempted by the resignation.
addition to pressure from the European standard-setters on the IASB, the G20 also calls into question the credibility, independence and accountability of international standard-setter, anything that will force the Trustees to address the group at its meeting of 15/11/2008.

Finally in October 2008 the IASB adopted an amendment to IAS 39 and IFRS 7 for the reclassification of certain financial assets of financial institutions. Measures were also taken in the direction of strengthening the credibility of the institution (amendment of the constitution and establishment of a council to oversee the Trustees) and a work plan was developed to address the crisis and respond to the findings of the G20.
Also a guide to application of fair value in an inactive market environment was issued in October 2008 and other technical documents to clarify the standards.

The work of the IASB and IASC to remain credible and responsible for international standardization, are not only extraordinary but also to welcome as these institutions did not disappoint those who early brought them their trust and support .
Indeed, institutions such as the AICPA, FASB, PCAOB, IFAC early supported the views of the IASB, and as time goes by, the support is growing.

Latest date in support of fair value include very distinguished Ben S Bernanke, Chairman of the Federal Reserve and U.S. Treasury Secretary by President Obama, Timothy Geithner.

every reason to believe that fair value is driven back into the good graces of key decision makers, although a survey by the Committee of European Securities Regulators (CESR) reported by Reuters in January 2009 indicated that the vast majority of European banks why the amendment to IAS 39 and IFRS 7 was reached had not exercised the option to reclassify the toxic assets.
not wait for the neutrality of accounting practices in return for the good of all. Case

so stay tuned ...

Bibliography

Documents

Rene Ricol , Report on the financial crisis in the context of the French Presidency of the European Union,
September 2008. 165 p.

Trustees of IASC , Trustees letter adressed to US President .

11 November 2008, 6 p.

• IASB , Reclassification of Financial Assets
  .
Amendments to IAS 39 Financial Instruments:
• Recognition and Measurement an d
  IFRS 7 Financial Instruments: Disclosures
.
• October 2008, 14 p .
  AMF , Recommandations de l' AMF en vue de l'arrêté des comptes 2008
  . 29 octobre 2008, 25 p.
• IASB Expert Advisory Panel, Measuring and disclosing the fair value of financial instruments in markets that are no longer active. October 2008, 84 p.
  
• Articles http://www.accountancyage.com/accountancyage/news/2230245/bush-asked-support-independence
  

http://www.iasb.org/About+Us/About+the+IASB/Timeline+of+key+announcements+and+measures+taken+by+the+IASB+in+response+to+the+financial+crisis.htm

• http://www.iasb.org/About+Us/About+the+IASB/Response+to+the+credit+crisis.htm
  
  
• http://www.iasb.org/News/Press+Releases/IASB+publishes+educational+guidance+on+the+application+of+fair+value+measurement+when+markets+become.htm
  
  
• http://www.iasb.org/News/Press+Releases/IASB+publishes+educational+guidance+on+the+application+of+fair+value+measurement+when+markets+become.htm
  
  
• http://www.webcpa.com/article.cfm?articleid=29825
  
  http://uk.reuters.com/article/idUKL743726920090107
• http://bloomberg.com/apps / news? pid = 20601087 & sid = & referer = aW0DT1yu68Vk home