What exactly did the Commission decide when adopting IAS 39?
At the meeting of 1 October 2004, a qualified majority of Member States in the Accounting Regulatory Committee (ARC), were of the opinion that the European Commission should adopt IAS 39 with two “carve outs”. The European Parliament also supported this solution. On 19 November, the Commission adopted a Commission Regulation endorsing IAS 39 Financial Instruments: Recognition and Measurement, with the exception of certain provisions on the use of the full fair value option and on hedge accounting. The Commission did not replace any of the provisions contained in the standard and neither did it add anything. It simply removed, or carved out, certain provisions.
