Link: IFRS special report
According to a European Commission spokesman, the Accounting Regulatory Committee, which provides an opinion on EU proposals to adopt international accounting standards, is set to meet on 1 October to give its ‘formal opinion and endorse the standard in its amended form’.
The spokesman strongly criticised the International Accounting Standards Board for not acting sooner to amend the standard and warned it would not be ready to go live on 1 January next year. ‘The IASB is in the process of amending the standard on fair value liabilities but there is no way the amendment will be finalised by 1 January 2005,’ he said.
‘It has failed to take into account objections raised at an early enough stage and has been more concerned with the convergence with the US than matters of greater importance that are affecting Europe.’
He added that the October endorsement of a watered-down standard would go ahead regardless.
The main opponents to a carved-up version of IAS39 include the UK, Sweden and Denmark along with the European Central Bank and the Basel Committee, which have stated that the current version of fair value would give rise to potential instability.
At a conference on international standards in London this week Sir David Tweedie said IAS39 was the ‘bane’ of his life and the IASB was desperately attempting to replace it.
Karel Van Hulle, the head of financial reporting at the European Commission said the IASB had not helped when it tried to improve the standard without tackling the problems that had been identified.
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