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Improving financial instruments reporting
24 August 2018
The International Public Sector Accounting Standards Board (IPSASB) has released IPSAS 41 Financial Instruments.
It is claimed that the new standard ‘substantially’ improves the relevance of information for financial assets and financial liabilities.
The new standard replaces IPSAS 29, Financial Instruments: Recognition and Measurement, and improves requirements by introducing:
*Simplified Classification and measurement requirements for financial assets.
*A forward-looking impairment model.
*A flexible hedge accounting model.
IPSAS chair, Ian Carruthers, said: “The significance of government debt to global capital markets can often be ignored.” He felt the new standard responds to the problems exposed by the global financial crisis, and replaces the rules-based approach of its predecessor.
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