PracticeConsultingEuropean bankers threatens IAS split

European bankers threatens IAS split

The heated row over proposed global rules on financial instruments is threatening to boil over, after bankers and insurers threatened to split with the IASB.

Link: IAS 39 to cost UK plc £500m

The European Financial Services Round Table, made up of the heads of leading banks and insurers, said it would use European rules rather international accounting standards 32 and 39 if last-minute concessions are not granted at today’s meeting in Brussels.

The banks say accounting for derivatives in the way prescribed by IAS 39 would lead to more volatility in their balance sheets.

Sir David Tweedie, chairman of the IASB, has asked the body to respond to the concerns, but it is not expected to grant all the concessions being demanded, the Financial Times reported.

The round table is expected to ask the European Commission to, in turn, to ask the European Financial Reporting Advisory Group to prepare a European accounting standard for financial instruments.

This could result is listed EU companies being forced to use two sets of standards, destroying the primary goal of the IASB project.

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