The European Commission (EC) adopted a regulation endorsing the amended International Accounting Standard (IAS) no. 39, Financial Instruments: Recognition and Measurement, also known as the fair value option ( http://europa.eu.int/comm/internal_market/accounting/ias_en.htm ). The regulation endorses the fair value option, which previously had been carved out of the EC’s endorsement of IAS no. 39 in response to various stakeholders’ concerns. The amendment is retroactively effective to January 1, 2005.
The International Accounting Standards Board (IASB) published Measurement Bases for Financial Reporting—Measurement on Initial Recognition, a discussion paper prepared by Canadian Accounting Standards Board staff. It analyzes possible bases for measuring assets and liabilities on initial recognition. Comments are due May 19, 2006 ( www.iasb.org/current/dp_pv.asp ).
The International Federation of Accountants (IFAC) released The Roles and Domain of the Professional Accountant in Business, a study that describes corporate CPAs’ responsibilities and qualifications, as well as their important role in ensuring effective corporate governance and control ( www.ifac.org/Store/Details.tmpl?SID= ).