CESR has closely monitored developments regarding accounting and especially developments regarding the ongoing discussions on financial instruments and fair value accounting.
In October 2008, the IASB approved an amendment to IAS 39 and IFRS 7 concerning the reclassification between some categories of some financial instruments. At the same time the amendments were endorsed to be used in the European Union. CESR has previously expressed its support for this initiative taken by the IASB and by the European Parliament as this initiative avoided a new European carve out.
The European Commission requested, in a statement dated 15 October 2008, that the IASB and CESR begin work immediately to find appropriate solutions to the issues associated with the fair value option, embedded derivatives, insurance questions and other problem areas in IAS 39 and IFRS 7, which in CESR’s view were of concern to the public interest, taking into account an appropriate level of transparency.
To view the statement published today click here.
