A new model has been proposed for financial instruments. Kushal Patel and Malcolm Finn consider its impact.

To many the title of this article will be recognised as that of a play, originally classified as a ‘comedy’ but now also classified as one of Shakespeare’s ‘problem’ plays – distinguished by its complex and ambiguous tone. However, that would have very little resonance with IAS 39, Financial Instruments: Recognition and Measurement. Rather, ‘Measure for measure’ conveys the imminent replacement of the rulebook on classification and measurement of financial instruments under International Financial Reporting Standards.

This summer,