On 7 October 2010, the International Accounting Standards Board issued Disclosures–Transfers of Financial Assets (Amendments to IFRS 7 Financial Instruments: Disclosures). The amendments have an effective date of 1 July 2011.
The project encompassed the requirements in IAS 39 Financial Instruments: Recognition and Measurement for when a financial asset or financial liability must be removed from an entity’s statement of financial position and the related derecognition disclosure requirements in IFRS 7 Financial Instruments: Disclosures.
The IASB added this project to its agenda for the following reasons:
In May 2010, the IASB and US FASB reconsidered their strategies and plans for derecognition in light of:
The boards agreed that their near-term priority should be on increasing the transparency and comparability of their standards by improving and converging US GAAP and IFRS disclosure requirements for financial assets transferred to another entity.