In line with the continuing adoption of International Financial Reporting Standards (IFRSs), the Financial Reporting tandards Council (FRSC) invites comments on the Exposure Draft issued by the International Accounting Standards Board (IASB) on:

The proposed amendment to IFRIC 9, Reassessment of Embedded Derivatives, is a consequential amendment that became necessary as a result of the changed definition of a business combination in revised IFRS 3, Business combinations. The Board proposes to exclude embedded derivatives in contracts acquired in combinations of entities or business entities under common control and in the formation of joint ventures from the scope of the Interpretation.

To eliminate an impediment for users, the amendment to IFRIC 16, Hedges of a Net Investment in a Foreign Operation, proposes to remove the restriction on the entity that can hold hedging instruments.

The exposure draft is a short document proposing urgent but relatively narrow amendments for which the IASB believes that there is likely to be a broad consensus. Therefore, the IASB approved a 30-day comment period. The IASB invites comments by 2 March 2009. Due to the short comment period, comments may be sent electronically to the IASB at www.iasb.org.

The FRSC Invitation to Comment and the IASB exposure draft may be downloaded from the Philippine Financial Reporting Standards (PFRS) website, within the PICPA website at www.picpa.com.ph. The exposure draft may also be downloaded from the IASB website at www.iasb.org.