04 June 2004

EFRAG preliminary endorsement conclusions on amended IAS 32

EFRAG has prepared a draft endorsement advice on the adoption of the amended IAS 32 dealing with the disclosure and presentation of financial instruments. EFRAG recommends adoption of the revised IAS 32 ‘Financial Instruments: Disclosure and Presentation’and is seeking further input on the preliminary conclusions.

EFRAG considered that the revised IAS 32 ‘Financial Instruments: Disclosure and Presentation’ meets the requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards that:

it is not contrary to the ‘true and fair principle’ set out in Article 16(3) of Council Directive 83/349/EEC and Article 2(3) of Council Directive 78/660/EEC; and

it meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

EFRAG therefore recommends to adopt the revised IAS 32 ‘Financial Instruments: Disclosure and Presentation’.

Comments should be submitted by no later than 5 July 2004.

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