-The proposal is directed to the valuation rules for the annual and consolidated accounts of certain types of companies in order to conform with new accounting standards caused by increasing use of derivatives. The accounting requirements set out in
these directives (4th and 7th Company Law Directives) reflect the consensus views of users and preparers of accounts and accounting standard setters that were held at the time the directives were adopted. The commission proposes changes in the directives that keep them in line with the International Accounting Standards (IAS).
IAS rules have moved away from the historical cost valuation model to 'fair value accounting'. The commission's key proposals incorporate this move. The balance sheet items that cannot be valued at fair value are specified. The proposed amendment is not directed at SMEs since they do not generally use derivative financial instruments.
© European Commission
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article