IAS 39; Best To Recognize Financial Instruments

This Standard ( IAS 39) establishes the criteria for recognition, measurement and presentation of information on financial assets and liabilities.It is the first full IASC Standard on this subject , as some of the issues addressed in it have been addressed in earlier Standards.

IAS 39

This Standard repeals what is established in IAS 25, except for what refers to investments in land, buildings and other tangible and intangible assets. The (IASC) is currently developing a Standard on such investment property . IAS 38, Intangible Assets, repealed the part related to intangible investments contained in IAS 25. This Standard also complements the provisions related to the presentation of financial information contained in IAS 32, Financial Instruments: Presentation and Disclosure.

IAS 39; Best To Recognize Financial Instruments All Details


Establish principles for the recognition and measurement of financial liabilities; as well as some contracts for the purchase or sale of non-financial items


Applies to all entities, for all types of financial instrument, except:

[a] Participation in Subsidiaries, Associates and Joint Ventures , to which IFRS 10, IAS 27 or IAS 28 apply.

[b] For the Rights and obligations according to IAS 17, it is partially applicable because some provisions of this IAS apply to:.

[c] Rights and Obligations of employee benefit plans, according to IAS 19.

[d] Financial instrument issued by an entity, which meet the definition of an equity instrument according to IAS 32.

[e] Rights and Obligations resulting from an insurance contract , as defined in IFRS 4.

[f] Deleted

[g] Any future contract that will result in a business combination under the scope of IFRS 3.

[h] For commitments to lend that are recorded under IAS 37, it is partially applicable because some provisions of this IAS apply to derecognition.

[i] Financial instrument, contracts and obligations according to Share -Based Payment transactions , to which IFRS 2 applies.

[j] Right to receive reimbursement of disbursements that an entity is obliged to make to settle a liability, recognized according to IAS 37.

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