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. Some argue, this development could jeopardise an attempt to converge EU accounting standards with those in the US.It is expected that the EU Commission will formerly confirm this position in November 2004. From 1 January 2005, 7000 listed companies will adopt new international accounting standards. This development represents a success for the lobbying of banks and insurers in France,Italy,Belgium and Spain who objected the EU Commission.Banks and insurers 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 related to the reporting of derivative contracts under International Accounting Standard 39 (IAS 39)and IAS 32. The graphic depicts banks and insurers protesting to the Chairman of the IASB about the new rules.The text heading is "Financial Instruments ".
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