EFRAG letter on IAS 39

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

11 Jul 2004

At its meeting in Brussels on 8 July 2004 the Technical Expert Group of the European Financial Reporting Advisory Group agreed to recommend that the European Commission endorse IAS 32 Financial Instruments: Presentation and Disclosure for use in Europe.

However, EFRAG concluded not to make any recommendation on endorsement of IAS 39 Financial Instruments: Recognition and Measurement. We had previously posted the EFRAG letter on IAS 32 (news story of 9 July). Click here to Download EFRAG's IAS 39 Letter (PDF 133k). An Excerpt:

Five members support endorsement of IAS 39 in its present form, but six members oppose endorsement. EFRAG cannot recommend non-endorsement of a standard unless there is a two-thirds majority vote against the standard, and EFRAG does not support endorsement unless there is majority in favour. Therefore, EFRAG does not issue any advice whether to endorse IAS 39 or not.

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