Reducing complexity in IAS 39 (TT JulAug08 p10-11)

The International Accounting Standards Board has started the formal process of considering the possibilities for reducing complexity in IAS 39. Its discussion paper sets out thoughts on the way financial instruments are measured and some ideas for simplifying hedge accounting. However, behind the openness to change, the board remains firmly wedded to the long-term aim of extending the application of fair values.