EFRAG submitted its preliminary views on the proposed Amendments to
IAS 39 - The Fair Value Option to the IASB.
EFRAG recommends the
IASB to reconsider its approach in meeting the concerns raised by prudential supervisors and other regulators in order to make
IAS 39 acceptable.
Among others, EFRAG criticizes that the practical consequence of the current proposal could be considerable confusion about the application of fair value measurement to all financial instruments.
One effect of the current proposals is that they seem to introduce a double standard on the application of fair value. The criteria that need to be met now vary depending on whether the item is required to be accounted for at fair value through profit or loss or whether it is permitted to be accounted for at fair value through profit or loss.
Comments are requested by no later than 28 June 2004.
EFRAG Comments
© EFRAG - European Financial Reporting Advisory Group
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