Exposure Draft 62, Financial Instruments

The International Public Sector Accounting Standards Board (IPSASB) has issued Exposure Draft 62, Financial Instruments.

This Exposure Draft proposes new simplified classification and measurement requirements for financial assets, a forward looking impairment model and a flexible principle-based hedge accounting model.

The IPSASB applied its Process for Reviewing and Modifying IASB Documents, to align ED 62 with IFRS 9, Financial Instruments and includes appropriate public sector specific modifications. This approach builds on public and private sector best-practice while addressing unique public sector features. ED 62 includes public sector specific guidance on financial guarantees issued through non-exchange transactions and concessionary loans and examples illustrating how to apply the principles in ED 62 to transactions that are unique to the public sector.