ICC Comments on the amending Regulation (EC) No 1725/2003 on the adoption of IAS 39

    ICC Comments on the amending Regulation (EC) No 1725/2003 on the adoption of certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards the insertion ofIAS 39

    Prepared by the ICC commission on : 
    Publication date : 22/11/2004

    ICC greatly appreciates the opportunity to comment on the European Commission proposal for a regulation adopting IAS 39 and certain other accounting standards (24 September 2004) and on the Accounting Regulatory Committee Opinion on IAS 39 (5 October 2004).

    The globalization of business investment and capital markets has increased the need for high-quality financial information. It is widely agreed, for example, that doubts about the reliability of corporate financial statements in some nations contributed to the breadth and depth of the financial incidents in recent years across the world. At the same time, business enterprises would benefit from a common approach to financial reporting that is characterized by consistency, coherence, and ease of implementation and understanding.

    ICC applauds the efforts of the European Commission to ensure that the European implementation of international accounting standards is in place from 1 January 2005.

    However, ICC is concerned that alack of international uniformity would jeopardize the important benefits of the exercise.

    Thus, ICC urges the European Commission to fully endorse IFRS (including IAS 39) to avoid fragmenting the application and thereby losing the useful benefits of a truly international standard.