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04 April 2009

ECOFIN statement on accounting standards


ECOFIN ministers considers it urgent to address the issue of valuation of assets in distressed and inactive markets. The Presidency invites the Commission to review the functioning of the 2002 regulation on international accounting standards.

ECOFIN ministers consider that it is urgent to address the issue of valuation of assets in distressed and inactive markets, where market prices cannot be considered as a reliable reference.

 

The US standard setting authority is in the process of adopting new accounting guidance, with the aim of accurate valuation of assets in illiquid markets which are not functioning properly, which could provide their financial institutions with much more flexibility to move away from using distressed prices in these circumstances. They also propose amendments to current US GAAP impairment rules. These changes could result in a significant divergence of international accounting practice for financial instruments.

 

Ministers therefore call on the IASB to co-operate closely with the FASB in order to immediately address these issues, with the aim of achieving equivalent treatment and application of parallel standards in the IFRS and US GAAP systems, in order to avoid risks of competitive distortions emerging.

 

Ministers recall the critical importance of converging accounting standards at global level as well as the fact that ensuring adequate transparency of banks' financial situation is key to restore confidence in financial markets.”

 

The Presidency invites the Commission to review the functioning of the 2002 regulation on international accounting standards.

 

Full statement

Meeting results

 



© Presidency of the Council


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