The group will focus specifically on application of accounting standards to financial institutions. In announcing formation of the group, the Trustees said: "The concept of such a group has grown out of discussions with the European Commission, which is invited to participate in the consultative group's discussions as an observer. While deliberations on the international standards on financial instruments (IASs 32 and 39) must come to a close by the end of March 2004, the extended debate surrounding the IASB's proposed improvements to these two standards has demonstrated that long-standing and basic issues of accounting and regulatory philosophy and approach will remain. The IASB will need in the future to address these longer-term issues, which centre importantly on the application and extent of fair value accounting appropriate for regulated financial institutions in the banking and insurance industries." Click for Press Release (PDF 18k).