|Date||Title / Description||Documents|
October 2, 2017
ISDA Responds to IFRS 13 Post-implementation Review
ISDA has responded to the International Accounting Standards Board’s IFRS 13 Post-implementation Review public consultation. Although our members are pleased with the principle-based approach used on the IFRS 13 standard to report fair value and the flexibility that it provides, our members are concerned with: (i) the costs associated with preparing the level 3 reconciliations; (ii) request to reconsider the use of P*Q for level 1 instruments, which assumes that the price that may be achieved for selling one share can also be achieved to sell a large holding; and (iii) recommends that any changes in this area should be coordinated with the Financial Accounting Standards Board.
May 24, 2017
ISDA responds to the IASB’s ED/2017/3 Prepayment Features with Negative Compensation
ISDA has responded to the International Accounting Standards Board’s (IASB) proposal to amend IFRS 9 Financial Instruments to enable companies to measure certain prepayable financial assets with so-called negative compensation options. ISDA’s members are of the view that it is important this issue is dealt with urgently, given the IFRS 9 application date is in January 2018. In view of this timetable, our members believe it is important for the IASB to limit any amendments made to IFRS 9 and, more specifically, to matters necessary to address the issue that was submitted to the IFRS Interpretations Committee. They do not think it is appropriate for the IASB to add more interpretative guidance by means of additional basis of conclusions paragraphs into the literature, which could have unintended consequences for other financial instruments.
May 24, 2017
ISDA responds to the EFRAG request on IASB’s ED/2017/3 Prepayment Features with Negative Compensation
ISDA has responded to European Financial Reporting Advisory Group’s (EFRAG) request for comments on the International Accounting Standards Board’s (IASB) proposal to amend IFRS 9 Financial Instruments to enable companies to measure certain pre-payable financial assets with so-called negative compensation options. ISDA’s members have stressed the importance to limit any amendments made to IFRS 9 due to the short timetable available to its implementation and which could potentially have unintended consequences for other financial instruments.
May 22, 2017
ISDA responds to the IFRIC on IFRS 9 Financial Instruments - Modification or Exchanges of Financial Liabilities that do not Result in Derecognition
ISDA has responded to the International Financial Reporting Standards Interpretations Committee’s tentative agenda decision made at its March 2017 meeting. This was as a result of a request submitted by a stakeholder to clarify whether an entity should recognize an adjustment to amortised cost in profit or loss when a financial liability is modified or exchanged, and that modification or exchange does not result in the derecognition of the financial liability.
May 17, 2017
ISDA responds to the EFRAG on the IASB ED/2017/3 Prepayment Features with Negative Compensation
ISDA has responded to the European Financial Reporting Advisory Group’s (EFRAG) request for advanced comments ahead of the International Accounting Standards Board’s (IASB) public consultation deadline due to the potential complexity of this issue. As with ISDA’s members, EFRAG is also of the view that prepayment features with negative compensation should be subject to the same eligibility conditions as prepayment features with positive compensation.
January 4, 2017
CCPs’ rule book changes on the settled-to-market model and impact on hedge accounting
On January 4, 2017, ISDA’s Accounting Committee issued a confirmation letter to the Staff of Office of the Chief Accountant of the Securities and Exchange Commission (SEC) related to an ISDA whitepaper on the accounting Impact of central counterparty rule book changes. The SEC staff confirmed all the conclusions of the ISDA Accounting Committee outlined in the whitepaper and follow-up submission – namely i) that the changes to the rule books of LCH and CME, as supported by legal opinions from external counsel, should result in the presentation of variation margin amounts as settlement of the derivative exposure and not collateral against it for purposes of applying the accounting and presentation guidance in ASC 815 (US GAAP covering derivatives and hedging); and ii) that the de-designation and re-designation of existing hedging relationships under ASC 815 would not be required solely because of these changes to the respective CME and LCH rule books. ISDA recognizes the significance of the continued application of hedge accounting when the hedging derivative has been affected by these rule changes and its importance to clearing members and end users.
February 9, 2016
ISDA responds to IASB consultation on Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts
On February 5, ISDA’s Accounting Committee responded to an International Accounting Standards Board (IASB) proposal to address the different effective dates of application of IFRS 9 ‘Financial Instruments’ and the new insurance contracts standard ‘IFRS 4’. Members agree this is an important issue for insurance companies. Resolving this issue promptly will help ensure IFRS 9 is endorsed as soon as possible and remove any uncertainly on the date of application.
February 9, 2016
ISDA response to tentative agenda decision on IAS 32 Financial Instruments: Presentation- Offsetting and cash pooling
On February 4, ISDA’s Accounting Committee responded to the International Financial Reporting Standards (IFRS) Interpretations Committee on a fact pattern related to notional cash pooling facilities and the application of the offsetting rules. We do not believe that ‘intention’ as required by IAS 32 implies a certainty in period end balances, but instead an expectation in the net exchange of settlement amounts arising from an asset and liability on a specified date. We believe the tentative agenda decision should be amended to highlight the principles of IAS 32 and should not set out an opinion for this specific fact pattern.
December 14, 2015
ISDA responds to the IASB’s on the ‘Request for Views: 2015 Agenda Consultation’
On December 11, ISDA’s Accounting Committee responded to a public consultation issued by the International Accounting Standards Board (IASB) seeking views on whether the IASB has the right priorities for its work plan, and whether the projects identified are indeed the most pressing areas for improving International Financial Reporting Standards (IFRS).
November 25, 2015
ISDA responds to IASB consultation on the Conceptual Framework
On November 25, ISDA’s Accounting Committee responded to a public consultation issued by the International Accounting Standards Board (IASB) seeking feedback on an exposure draft proposing a revised Conceptual Framework (CF). The CF describes the basic concepts related to the preparation and presentation of financial statements underpinning the accounting of derivatives transactions.