At this meeting, the IASB continued its redeliberations on phase II of the project to replace IAS 39 Financial Instruments: Recognition and Measurement.
The mechanics of various approaches were discussed at the last meeting. This meeting focused on a discussion of what the amounts in the statement of financial position and profit or loss would represent for both the time-proportionate (ie 'partial' catch-up) and single period allocation (ie 'no' catch-up) approaches. The Board also discussed the advantages and disadvantages of each of those approaches. Although there were no specific decisions requested at the meeting, the Board directed the staff to develop the time-proportionate approach further. They asked the staff to explore how such an approach might be modified to obtain outcomes more similar to the approach proposed in the exposure draft Amortised Cost and Impairment.
Joint Education Session
At this education session, the FASB provided feedback received from constituents regarding the proposed impairment and interest income recognition guidance in the proposed Accounting Standards Update, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities: Financial Instrument (Topic 825) and Derivatives and Hedging (Topic 815) (the ED).
The IASB an FASB also discussed some of the main components of an expected loss credit impairment model and the interdependencies among those components. On 10-12 November, the Boards will meet jointly and further discuss:
- what information should be considered in determining an expected loss;
- the necessity, treatment, and definition of a �good� book and �bad� book; and
- the timing of recognition of credit impairment losses (ie upfront recognition or allocation over some time period).
No decisions were made at this meeting.