PracticeConsultingIAS39 to be replaced

IAS39 to be replaced

The controversial international accounting rule IAS39, responsible for anger among bankers and political machinations throughout Europe, is to be replaced.

Link: IAS special report

The International Accounting Standards Board laid the foundations for a replacement yesterday, while at the same time publishing revisions to the exisiting rule.

With the board’s self-imposed deadline for the publication of all standards relating to the 2005 introduction of international rules passing today, it has released new standards IFRS3, IFRS4 to IFRS5 alongside the amendments to IAS39 relating to macro hedging.

But alongside the revision, the board also announced that it is to set up an international working party to examine the fundamentals of IAS39, with a view to replacing the standard.

The move should help appease the concerns of European banks, which claimed the new rules would introduce false volatility into their accounts. But the IASB has yet to release another exposure draft on IAS39, relating to the fair value option. It will be published this month and have a 90-day consultation period.

Further controversy could see the European endorsement of IAS39 delayed for a year.

Three new standards emerged yesterday. IFRS3 on business combinations bans merger accounting; IFRS4 insurance contracts sets out standards for the insurance industry, and IFRS5 arises from the IASB’s joint convergence project with its US counterpart.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer