Financial Reporting-IAS 39/IAS 32

(img fr33"ias_39_recognition_der")

IAS 39 deals with the recognition and measurement of the value of financial derivatives. IAS 32 deals with the disclosure and presentation of that valu. Banks and insurers had feared greater volatility in their balance sheets as a result new and proposed new financial reporting rules from the International Accounting Standards Board (IASB).The changes relate to the reporting of derivative contracts under International Accounting Standard 39 (IAS 39)and IAS 32.The IASB wishes to see derivative contracts valued at fair or market value in financial statements.On 8 September 2004 EU Member States accepted the recommendations of the EU's Accounting Regulatory Committee to only partially endorse the introduction of proposals on financial reporting standards on derivative contracts, known as IAS 39. The graphic depicts IAS 39 and IAS 32 as mountain peaks or standards which will need to be attained by EU Listed Companies from 2005.Text "Financial Derivatives" is added.