IAS 32-39: the position of the International Group of Treasury Associations (IGTA)
IGTA supports the principles behind IAS 32-39 but believes changes need to be adopted before it can be implemented:
- IGTA and its 26 member Associations consider that IAS 39 should not be adopted without these essential changes
- The IASB’s detailed rules for implementation of the principles of IAS 39 have serious potential impact on companies and may make effective hedging much more difficult and considerably more expensive to achieve for many companies
- Simple changes, wholly consistent with the principles of IAS 39, are available to solve the problem, and would bring IAS 39 more closely into line with US GAAP’s FAS 133 in these areas
- IGTA supports the IAS 39 principles of marking positions to market as long as these are consistent with sound financial management
- IGTA considers that hedging of financial price risks by companies is important to them and to financial stability generally
Notes to editors
The International Group of Treasury Associations (IGTA) was formed to enhance activities of Treasury Associations across nations. It encourages the highest standards of professional ethics and best practice among treasury professionals world-wide and campaigns to raise the profile of the treasury profession. For further information please visit www.igta.org.
