RESPONDING TO GASB FOR PUBLIC COMMENT

Responding to GASB For Public Comment

Responding to GASB For Public Comment

Introduction

Introduction

In these times of changes found immersed accounting and accounting profession, 2007 and 2008 seem evident as a pe- riod key throughout the process. They will through the decisions that will be established accounting standards to be followed by a large number small and medium enterprises in our country for which International Standards are not direct application, but which also has considered that the force was insufficient PGC you in the light of developments taking place internationally.

So throughout 2007, we had occasion to review and comment on two proposed standards that provide us quite different solutions for the same pro- problem: how to evolve the accounting information of this group of small and medium enterprises to new international trends. These proposals are on the one hand, the Draft Rules International Small and Medium-sized Entities IASB (the draft IFRS for SMEs) and, secondly, the General Accounting Plan (PGC) recently approved in Spain.

In this article, because it is our field of research tradition, we were interested in highlighting and analyze the different approaches that the draft IFRS for SMEs and the PGC made ??in the case of accounting for financial instruments and the work hedge accounting treatment of contracts of derivatives, provided that this limited scope prevents general ised in a way our proposed approach general of both documents.

We find that in the regulation of instruments PGC financial, but does not indicate expresamen- you has been inclined to extend to SMEs Spanish criteria established by IAS 39 of IASB, which are reflected, albeit Very briefly in the new text of the plan. This is so because the effort that has inspired the entire process reform of our accounting policies have focused in pursuit of its convergence with International International, without giving specific objectives you local business.

However, the target has moved to IASB develop the project for SMEs, building on Standards, has been adapted to information needs of entities medium size are not required to file publicly accountable to the participants in financial markets. This adaptation has required a serious process of reflection on the importance and frequency of certain operations in SMEs, from which raises important simplifications in the framework of operations financial instruments and hedge-regulated by IAS 39 has been strongly criticized by its complexity and make it difficult to implement- much more affordable, especially for operational management of such entities.

For example, categories or portfolios of instruments financial instruments advocated by the IAS 39 basis the grounds for the operation disappear into the pro- draft IFRS for SMEs and replaced by the deli- Mitación specific characteristics that require to assess an operation at cost or amortized cost and establishing an applicable endpoint defect to other situations (fair value, with impact of differences in valuation account income).

The assessment of impairment of financial assets and situations involving the termination of the recognition of financial instruments are set also much more clear and ...