Last week the International Accounting Standards Board (IASB) published its discussion paper, Reducing Complexity in Reporting Instruments.  “The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret, and apply,” the announcement says, “and constituents have urged the IASB to develop standards that are principle-based and less complex.”  The document is the first stage in a project that aims to replace IAS 39 Financial Instruments: Recognition and Measurement; it analyzes the main causes of complexity in reporting financial instruments and proposes possible intermediate approaches to address some of them.   “The IASB seeks views on both the possible long-term and intermediate approaches, and…how it should proceed in developing new standards for reporting financial instruments that are principle-based and less complex.”  Comments are welcome through September 19, 2008—and the FASB may also publish the paper for feedback from its constituents.  To review the discussion paper, click here.