IASB: Speech of Sir David Tweedie before EMAC on IAS 39

01 October 2004

The International Accounting Standards Board (IASB) has published the speech of Sir David Tweedie before the European Parliaments Economic and Monetary Affairs Committe held on 22 September. The statement includes a report on the history, background, and progress of discussions on IAS 39.

Sir Tweedie pointed out that in the absence of an alternative that would provide sufficient transparency, IAS 39 as it already stands remaines the best option.

'Some commentators and constituents have noted that the IASB has called for a replacement for IAS 39, in an effort to reduce the complexity of the accounting rules for financial instruments' Sir Tweedie said. 'I believe that finding such a replacement will not be easy and will probably take a long time-a luxury that we did not have in preparation for the adoption of international standards in the European Union.'

'The IASB understands the concerns relating to IAS 39, particularly about its complexity, but believes that until a better solution can be identified and developed the discipline required by the provisions of IAS 39 is essential to provide credibility to financial statements prepared under International Financial Reporting Standards and to the development of a common European capital market.'

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