FRED33 Financial instruments - disclosures
Comments from ACCA
October 2004
The Association of Chartered Certified Accountants (ACCA) is pleased to have this opportunity to comment on the above exposure draft. FRED33 was considered by ACCA's Financial Reporting Committee.
Our particular comments on FRED33's adoption of ED7 into the UK and Ireland are as follows:
- We disagree with the exclusion of the disclosures on derecognition (paragraph 14). We note that the disclosures of FRS5 are less specific and inferior to those of ED7. ASB should converge with IAS39 in this area in respect of financial instruments, while leaving FRS5 in place for derecognition of other items.
- We support the inclusion of paragraphs 23A and 23B which seem sensible additions given the option intended for FRED30 to stay with historical cost for financial instruments for unlisted companies.
In response to the two questions raised by ASB
- We do not see the need for any special exemptions in the UK version of ED7, though you will note that we have not agreed with all of the proposed disclosures in ED7.
- We disagree with the inclusion of capital disclosures in ED7 and would prefer to see the ASB include this in the OFR.