Financial Reporting-IASB setting new standards in IAS 39 , IAS 32, ED5

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Banks and insurers fear 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. A revised IAS 39 was issued in March 2004 by the IASB. It introduces a common standard on how to treat the use of derivatives in financial statements. ED 5 (IFRS Rule 4) is a proposal on the accounting treatment of insurance contracts. Institutional investors are supporting the introduction of new accounting rules. The graphic depicts the Chairman of the IASB, Sir David Tweedie, set against the backdrop of mountain peaks named IAS 39 ,IAS 32 and ED5 representing the new reporting standards for financial derivatives. The text heading is "IASB".