The International Accounting Standards
Board (IASB) has issued a number of proposals as part of its
response to current market conditions. Proposed amendments to IFRS
7 Financial Instruments: Disclosures reflect discussions in a
series of roundtable meetings on the global financial crisis
organised by the IASB and the US Financial Accounting Standards

The amendments would require an entity to state in tabular form
the fair value, amortised cost and amount at which investments are
carried in financial statements. An entity would also have to
disclose the effect on profit or loss if all debt instruments had
been accounted for at fair value or amortised cost.

Proposed amendments to clarify accounting for embedded
derivatives are also a response to requests from the roundtables.
The amendments are designed to prevent diversity in practice
developing as a result of amendments made to IAS 39 in October to
permit the reclassification of particular financial assets.

The proposals require all embedded derivatives to be assessed
and, if necessary, separately accounted for in financial

A proposed new consolidation standard forms part of a
comprehensive review of off-balance sheet risk and addresses an
area highlighted by the G20 leaders and the Financial Stability