EFRAG preliminary endorsement conclusions on amended IAS 39

04 June 2004

EFRAG has prepared a draft endorsement advice on the adoption of the amended IAS 39 dealing with the recognition and measurement of financial instruments. EFRAG recommends adoption of the revised IAS 39 ‘Financial Instruments: Recognition and Measurement’ and is seeking further input on the preliminary conclusions.

EFRAG concluded on balance that the revised IAS 39 ‘Financial Instruments: Recognition and Measurement’ 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.

In the light of these considerations, EFRAG recommends to adopt the revised IAS 39 ‘Financial Instruments: Recognition and Measurement’.

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

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