The Board discussed the responses to the exposure draft Improving Disclosures about Financial Instruments (ED), published in October 2008, and tentatively decided:
- as proposed in the ED, to require a three-level fair value disclosure hierarchy in IFRS 7.
- to use the same hierarchy as in Statement of Financial Accounting Standards No. 157 Fair Value Measurements issued by the US Financial Accounting Standards Board (FASB).
- not to require disclosures about the fair value hierarchy for financial instruments that are not measured at fair value. Existing disclosure requirements for those instruments would still apply.
- to emphasise the existing requirement to provide summary data about each type of risk arising from financial instruments based on information provided internally to key management personnel.
- as proposed in the ED, to require disclosure of separate maturity analyses for derivative and non-derivative financial liabilities.
- to retain the existing minimum contractual liquidity risk disclosures for non-derivative financial liabilities.
- not to require the existing minimum contractual liquidity risk disclosures for some types of derivative financial liabilities.
- to require entities to apply the final amendments for annual periods beginning on or after 1 January 2009, with earlier application permitted and comparative disclosures not required on transition.
The Board directed the staff to draft the final amendments for written ballot.
The Board also discussed responses to the exposure draft Investments in Debt Instruments, published in December 2008, and decided not to proceed with the proposed amendments at this time. The Board will consider the issues addressed in the exposure draft and other issues in its broader project on improving the accounting for financial instruments.