Financial Instruments

The International Accounting Standards Board has published an exposure draft, ED/2009/7, Financial Instruments: Classification and Measurement, which retains the two primary measurement categories for financial instruments in IAS 39, Financial Instruments: Recognition and Measurement: amortised cost and fair value. The proposals are likely to increase the use of amortised cost measurement for debt securities and increase the use of fair value measurement for equity securities and some financial contracts that contain embedded derivatives.