- IASB discussion paper identifies varying methods and rules as main cause of complexity in financial reporting.
- Paper proposes revised reporting standards and seeks to replace IAS 39.
- Paper suggests intermediate and long term approaches to problems related to financial instrument measurement.
- Suggested interim approaches include simplifying measurement requirements; replacing existing requirements with fair value measurement principles; and simplifying or eliminating hedge accounting requirements.
- Single, uniform fair value measurement method - appropriate for all types of financial instruments - urged as the most promising long term solution.
- Cost-based measurement method rejected for failing to provide information about future cash-flow prospects.