FASB - Convergence with IFRS on financial instruments 

December 20:  The FASB at its December 2013 meeting discussed the proposed standards on financial instruments’ impairment and classification and measurement.
  • Convergence with IFRS does not seem probable on impairment and classification and measurement based on the FASB’s latest tentative decisions.

  • For the proposed Accounting Standards Update (ASU) on impairment, the FASB reached a tentative decision to continue to pursue the lifetime expected credit loss model.

  • For the proposed ASU on classification and measurement, the FASB decided to (1) no longer pursue the solely principal and interest (SPPI) model for assessing the contractual cash flow characteristics of financial assets, and (2) retain the bifurcation requirements for hybrid financial assets in current U.S. GAAP.

Read a December 2013 report [PDF 175 KB] prepared by KPMG LLP: Defining Issues: IFRS Convergence Not Probable on Impairment and Classification and Measurement of Financial Instruments

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