UK’s ACT Sends Cautious Letter of Support to IASB

The Association of Corporate Treasurers (ACT) has written to the International Accounting Standards Board (IASB) expressing its support for IAS 39 and urging the EU to adopt the standard together with other international financial reporting standards for use from 2005. The ACT said: ‘[We] strongly support the key principle in the standard that derivatives should be valued at their fair market value and 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 helpful in clarifying an area of accounting that has been without formal guidance for too long.’ Furthermore, the ACT welcomed the commitment from the IASB to engage in further review and consultation on IAS 39 following initial implementation in its current form. Commenting on the announcement, Richard Raeburn, Chief Executive of The Association of Corporate Treasurers, said: ‘While aspects 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. This is very important for capital markets in Europe and around the world.’


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