EFRAG to consider EC's IAS 39 'carve out'
15 Sep 2004
The Technical Expert Group of the European Financial Reporting Advisory Group (EFRAG) will hold an open meeting on 22 September 2004 in Brussels to evaluate the proposal of the European Commission to adopt IAS 39 for use in Europe minus two sections, as discussed in our news stories of 9 and 10 September 2004.
The two sections relate to (a) the prohibition on hedge accounting for core deposits and (b) the fair value option. The purpose of EFRAG's meeting is to consider whether IAS 39 with these two sections 'carved out' would "lead to a technically robust, sound, and consistent solution. The aim is not to evaluate whether the carve-out solution in principle is the preferred option." EFRAG invites interested parties to provide comments on the carve-out proposal by 21 September 2004.