Banks hopeful of IAS change
European banks are hopeful that further changes will be made to the controversial international accounting standard dealing with derivatives, following talks with the standard setter last week.
Link: IAS special report
The International Accounting Standards Board is expected to finalise the outstanding details on its financial instruments standards, specifically dealing with fair value hedge accounting and derivatives, later this month.
The issue has roused massive opposition from the banking community, which claims the new rules will dangerously increase the volatility of its financial reports. The European Commission has also been drawn into the arguments and could still refuse to ratify the standard in time for the introduction of IASs for listed companies across the European Union in 2005.
Last week’s meeting looks to have made good progress with a strong possibility that a compromise could now be reached, according to the Financial Times.