New proposed financial reporting standard – PBE IPSAS 41 Financial Instruments
The External Reporting Board (XRB) recently issued for comment a proposed standard on the recognition and measurement of financial instruments. The proposals are relevant for charities reporting under Tier 1 or Tier 2 standards.
These proposals will align the requirements in PBE Standards with more recent international standards. The invitation to comment explains the differences between the proposed requirements and the current requirements.
When finalised, PBE IPSAS 41 will supersede most of PBE IPSAS 29 Financial Instruments: Recognition and Measurement. It will also supersede PBE IFRS 9 Financial Instruments which was issued as an interim measure, pending the development of PBE IPSAS 41.
The XRB has also issued another short ED which proposes to defer the effective date of PBE IFRS 9 by a year to 1 January 2022.
Comments on the exposure drafts are open until 28 February 2019. The full documents and information on how to comment can be found here (external link) .