ISDA’s Accounting Committee has responded to the International Accounting Standards Board’s discussion paper, Financial Instruments with Characteristics of Equity DP/2018/1. ISDA’s members accept that IAS 32 Financial Instruments: Disclosure and Presentation includes a number of accounting requirements that can be improved. However, we don’t believe the standard is ‘broken’ and in need of a totally new model with untested principles that may have unintended consequences. Therefore, our members believe there are parts of the analysis carried out in the discussion paper that could be used to improve IAS 32 and resolve some of the long-standing issues, rather than require entirely new and untested accounting rules.
Documents (1) for ISDA Responds to Paper on Financial Instruments with Characteristics of Equity
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Expanding Legal Agreement Coverage in the CDM
This paper examines the recent extension of the Common Domain Model (CDM)1 to represent two of the most significant, and previously undeveloped, areas of its legal agreement model: umbrella agreements and contract amendments. Umbrella agreements are widely used to document...
ISDA Omnibus Canadian Representation Letter
On September 2, ISDA published the Omnibus Canadian Representation Letter, which combines previously published representation letters drafted to assist firms in compliance with Canadian trade reporting, business conduct, regulatory margin and clearing classification rules. The Omnibus Canadian Letter is designed...
Joint Response on Cross-margining
On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...
Accounting for Carbon Credits: Latest Developments
This paper updates and extends the analysis set out in ISDA’s October 2023 paper on accounting for carbon credits. While preserving the original focus on the accounting treatment of voluntary carbon credits (VCCs) and compliance carbon credits (CCCs), it expands...