ASB to rule on IAS39 adoption

Link: EU approves diluted IAS39 rule

ASB board members met last Thursday to discuss full adoption of the rules, according to The Financial Times.

It?s expected the board will require companies to adopt in full the updated version of IAS39.

Under a ruling by the European Commission all publicly listed companies in the European Union must adopt international financial reporting standards by 2005.

But one standard in particular, IAS39 – which requires companies to account for derivatives at market value – is strongly opposed by some business leaders because of the volatility it will cause in the accounts.

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