IAS 39 - Financial Instruments: Recognition and Measurement
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 39, now largely replaced by IFRS 9, provided rules for classification, recognition, derecognition and measurement of financial instruments, including hedge accounting.
Detailed Explanation
IAS 39 (largely replaced by IFRS 9) addressed recognition, derecognition, classification, and measurement of financial instruments and included hedge accounting rules under the previous model.
Common Uses
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Practical Example
- Example: When preparing year-end reporting, management applies **IAS 39 - Financial Instruments: Recognition and Measurement** to determine the correct IFRS treatment and disclosures.
Why This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.