IAS Financial Instruments Disclosure and Presentation.pptVIP

IAS 32/39 Financial Instruments: Disclosure and PresentationRecognition and Measurement Agenda Scope and definitions IAS 32 Liability and equity Offsetting a financial asset and financial liability IAS 39 Classification of financial instruments Measurement of financial assets and liabilities Derivatives and embedded derivatives Recognition and derecognition Hedging and hedge accounting IAS 32 – Disclosure requirements Case study History and Effective Date IAS 32 Effective for accounting periods beginning on or after 1 January 1996. Other related interpretations SIC 5 Classification of Financial Instruments – Contingent Settlement Provisions. SIC 16 Share Capital – Reacquired Own Equity Instruments (Treasury Shares). SIC 17 Equity – Costs of an Equity Transaction. IAS 39 Effective for accounting periods beginning on or after 1 January 2001 Other related guidance Interpretation Guidance issued by IGC. IAS 32/39 (Revised 2003 and 2004 for Portfolio Hedge of Interest Rate Risk) Effective for accounting period beginning on or after 1 January 2005. Draft Amendments to IAS 39 Financial Instruments: Recognition and Measurement: The Fair Value Option. Issued on 21 April 2004. Objective IAS 32 To enhance financial statement users’ understanding of the significance of financial instruments to an entity’s financial position, performance and cash flows. IAS 39 The objective of this Statement is to establish principles for recognising, measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. Scope and Definitions Scope Exclusion: . Scope : Non-financial item contracts Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument are treated as financial instruments: unless the non-financial item contracts: were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity’s expected purchase, s