This removes one of the two 'carve-outs' that the EC had imposed when endorsing IAS 39 for use in Europe. The amended fair value option was approved unanimously by the EU Member States at the Accounting Regulatory Committee and by the European Parliament. Adoption is retroactive to 1 January 2005, so that companies will be able to apply the amended standard for their 2005 financial statements. Internal Market and Services Commissioner Charlie McCreevy said: "I am very pleased that the Commission has been able to eliminate the 'fair value carve-out' to IAS 39. The two IAS 39 carve-outs were always intended to be exceptional and temporary. We therefore need to press on with the technical work to find a solution on the second carve out." Click for:

• (PDF 94k).
• (PDF 62k).