The Accounting Standards Board while formulating Indian Accounting Standards (Ind ASs) in 2011 did not formulate the Ind AS corresponding to IFRS 9, Financial Instruments, as at that time IFRS 9 was not completed by the International Accounting Standards Board (IASB). Accordingly, the ICAI decided to converge with IAS 39, Financial Instruments: Recognition and Measurement till the time IFRS 9 is being completed by the IASB.

The IASB in July 2014, completed and issued the IFRS 9, Financial Instruments. Accordingly, the Accounting Standards Board with a view to keep pace with the new IFRS/ revisions in IAS/IFRS decided to formulate Ind AS 109, Financial Instruments corresponding to IFRS 9.

The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI), at its 212^th meeting, considered and finalised the Exposure Draft of Ind AS 109, Financial Instruments and decided to invite comments from various stakeholders.