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Accounting and Reporting for Financial Instruments: International Developments

The International Accounting Standards Board (IASB) has found the task of establishing standards on accounting for financial instruments, including derivatives, as challenging as FASB has. The international guidance on accounting for financial instruments is contained mainly in two standards: International Accounting Standard (IAS) 32, Financial Instruments: Disclosure and Presentation, and IAS 39, Financial Instruments: Recognition and Measurement.

In December 2003, the IASB issued amendments to both standards. The revised IAS 32 and IAS 39 are effective for financial years beginning on or after January 1, 2005, with early adoption permitted.

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