R39 (South Africa)

In South Africa, "R39" commonly refers to South African Generally Accepted Accounting Practice (GAAP) statement AC 133, "Financial Instruments: Recognition and Measurement," as revised in March 2009. Prior to the adoption of International Financial Reporting Standards (IFRS), AC 133 (commonly known as R39) governed the accounting and reporting of financial instruments within South Africa. It detailed principles and rules related to the classification, measurement, recognition, and derecognition of financial assets and liabilities, including derivatives.

While South Africa has largely transitioned to IFRS, which includes IFRS 9 "Financial Instruments," R39 still holds historical significance as the previous standard used for financial instrument accounting. References to R39 may appear in older financial statements or in discussions regarding the transition from South African GAAP to IFRS. The standard addressed issues such as the initial recognition of financial instruments, subsequent measurement (including fair value measurement), impairment of financial assets, and hedge accounting. It was a comprehensive and complex standard designed to improve the transparency and comparability of financial reporting. While superseded by IFRS 9 for most entities, understanding R39 is valuable for interpreting past financial information prepared under South African GAAP.