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27 September 2004

EFRAG: Technical Evaluation of IAS 39 Carve-out





Members of EFRAG Technical Expert Group have evaluated the Commission's proposal regarding the endorsement of IAS 39. The objective was to assess whether the proposal achieves its intended objective.

EFRAG identified one point in relation to the Fair Value Option in that paragraph 9 would still permit an entity to designate a liability as at fair value through profit-loss.

In relation to the hedging carve-out EFRAG members discussed whether paragraph 49 might work against the Commission’s objective.

The TEG members believe that there are significant side effects that could result in less reliable accounting relating specifically to the relaxation of the hedging effectiveness test.

Full response
Comment letters considered in formulating the EFRAG response

© EFRAG - European Financial Reporting Advisory Group


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