Why did the Commission not carry out a consultation before the adoption of the carved out version of IAS 39?
Despite a long discussion in the past neither, standard setters nor EFRAG were in a position to find a consensus on this standard. Had this been the case, the Commission would not have had to carve out certain provisions of the standard. Technical discussions lasted for almost three years with no solutions in sight. Since there has been no satisfactory outcome to date and the January 2005 deadline is approaching for all listed companies to apply IFRS, the Commission had to act. The Commission has received many technical comments on these carve outs and asked EFRAG to assess whether the carve outs envisaged by the Commission are technically workable. The carve outs provided for in IAS 39 are fully in line with the comments made by EFRAG in a letter dated 26 September 2004. The Commission hopes that these carve outs will be temporary – pending the completion of work by the IASB.
Related Questions
- On 16 July 2003, the Europe has taken a major decision concerning the adoption of IAS and IFRS norms. Which was it ?
- Why did the Commission not carry out a consultation before the adoption of the carved out version of IAS 39?
- What role does Forestry Commission Wales (FCW) carry out in the consultation process?
