The ACT Supports IAS 39 on Financial Instruments

The Association of Corporate Treasurers (ACT) has now written to the International Accounting Standards Board (IASB) supporting IAS 39 and urging the EU to adopt the standard together with other international financial reporting standards for use from 2005. This follows an extensive involvement in the consultation processes that took place prior to the formal release of IAS 39.

The ACT strongly supports the key principle in the standard that derivatives should be valued at their fair market value. It recognises that while the standard is not perfect and it does throw up some anomalies, it would be far from ideal to abandon or delay a standard which is overall helpful in clarifying an area of accounting that has been without formal guidance for too long. The ACT welcomes the commitment from the IASB to engage in further review and consultation on IAS 39 following its initial implementation in its current form.

The Association of Corporate Treasurers Chief Executive, Richard Raeburn, commented:
While aspects of the effects of IAS 39 are regrettable, we think that there is more at stake and it is important to press on with implementing international standards now as a base from which to move forward. Adopting IAS will address issues and fill gaps in national standards which have remained pending the introduction of international standards. This is very important for capital markets in Europe and around the world.

Notes to editors

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