IAS39 revisions slated
The UK banking industry still has 'real issues' with aspects of the international accounting standards on financial instruments, despite the release of yet another exposure draft on the controversial proposals.
Link: IAS special report
The release for consultation by the International Accounting Standards Board of further amendments to IAS39, this time on the fair value option, coupled with last month’s amendments to macro hedging, have failed to soothe anxieties among the banks, according to Paul Chisnall, director at the British Bankers’ Association.
The body is still pushing for further changes to the standard, despite the dwindling time left to get IAS39 endorsed before it can be introduced across the European Union in 2005.
In particular, it is still concerned with the treatment of core deposits by the standard.
‘All we are asking for is to have hedging rules that match what the banks are trying to do when they hedge risk,’ said Chisnall. ‘We still take the view that the IASB should do all it can to address these issues.’
Chisnall admitted that time was running out, but said there was enough time for changes to be made.
It is still unclear whether the European Union will be willing to adopt IAS39 in its current form in time for 2005, but it seems there is little problem with most of the other new standards.