The International Accounting Standards Board (IASB) has issued its amendments to IAS39, the financial standard set to affect corporates? accounting transactions from January 1 2005. Two of the amendments are designed to add further guidance on issues raised by the business community; the third amendment hopes to ensure that a guarantor?s balance sheet includes all guarantees issued.
The first amendment will ease transition to IAS39 by eliminating differences between the IASB?s standards and US requirements, while the second amendment (titled ?Cash Flow Hedge Accounting of Forecast Intragroup Transactions?) hopes to clarify the treatment of foreign currency cash flow hedges on financial statements
Sir David Tweedie, the IASB chairman, comments: ?These proposed amendments are an attempt to address some limited, but important, implementation issues on IAS39 and respond directly to certain concerns expressed by constituents. Our objective is to ease the implementation of IAS39, and to ensure that liabilities for financial guarantees are not omitted from the financial statements.?
For more on the development of IAS39 see CFs roundtable in the July issue.