ASB issues a Financial Reporting Exposure Draft: Amendments to FRS 29 (IFRS 7) 'Disclosures - Transfers of Financial Assets'

News types: Consultation Announcement

Published: 28 February 2011

ASB PN 360
The Accounting Standards Board (ASB) of the FRC has today published a Financial Reporting Exposure Draft (FRED) for public comment aimed at improving the disclosures on transfers of financial assets. The proposals amend the disclosure requirements in FRS 29 (IFRS 7) ‘Financial Instruments: Disclosures’. They incorporate new disclosure requirements that would help users of financial statements evaluate an entity’s risk exposure arising from transfers of financial assets as well as any resulting impact on its financial position.

The need for the proposed amendment has arisen as a result of the International Accounting Standards Board (IASB) amendments of the disclosure requirements in International Financial Reporting Standard (IFRS) 7 ‘Financial Instruments: Disclosures’ during October 2010. The amendment enhances the information currently provided in financial statements in relation to risk exposures arising from transfers of financial assets by an entity. As the requirements in FRS 29 are converged with those in IFRS 7, the proposals in this ASB amendment to FRS 29 (IFRS 7) are identical to those IASB amendments and would ensure that the requirements in the two standards do not diverge.

The FRED is open for comment until 30 April 2011.

Notes to Editors

  1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.

  2. The role of the ASB is to oversee the financial reporting requirements for UK entities. This is done by maintaining and improving UK Financial Reporting Standards (FRS) and influencing the development of international standards. The ASB achieves this by collaborating with accounting standard-setters from other countries and the International Accounting Standards Board (IASB).

  3. The ASB currently has ten Board members, of whom one (the Technical Director) is full-time, and the remainder, who have a variety of experiences as preparers, auditors and users of financial reports, are part-time.

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