IAS 39 Amendments - Financial Instruments: Recognition and Measurement: The Fair Value Option

The amendments provide entities with an option when certain conditions are met to designate irrevocably on initial recognition a financial instrument as measured at fair value with gains and losses recognised in profit or loss. The objective of these amendments is to allow entities to provide more relevant information about their financial instruments while not allowing them to use the option inappropriately.

EFRAG published its final comment letter on the issue on 23 July 2004 and its endorsement advice on 20 June 2005.