As part of its response to the financial crisis and G-20 conclusions to improve transparency, the International Accounting Standards Board has amended the disclosure requirements for fair value measurements contained in IFRS 7, Financial Instruments: Disclosures. The changes, which bring IFRS more closely into line with US standards, introduce a three-level hierarchy for fair value measurement disclosures, require additional disclosures about the reliability of fair value measurements and enhance disclosures about liquidity risks. Separately, the IASB has clarified the accounting treatment of embedded derivatives for entities using its October 2008 reclassification amendment. Amendments to IFRIC 9, Reassessment of Embedded Derivatives, and IAS 39, Financial Instruments: Recognition and Measurement, make clear that on reclassification, all embedded derivatives have to be assessed and, if necessary, separately accounted for in financial statements.
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