European Parliament’s IAS 39 clearing eligibility proposal criticised by accountants
Accountants condemn a proposal to use IAS 39 as a means to determine whether a derivative has to be cleared through a central counterparty.
A proposal by the European Parliament's Economic and Monetary Affairs Committee (Econ) to exempt derivatives trades from central clearing if they comply with hedge accounting rules under International Accounting Standard 39 (IAS 39) is fraught with pitfalls, say accountants.
"It is an absurd idea - they are firing from the hip here," says one accountant. "Yes, the parliament has endured a significant lobbying effort by corporate derivatives users to exempt them from central clearing, but to
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