IASB to create advisory group

The International Accounting Standards Board (IASB) is investigating the establishment of an advisory forum, following comments from euro official Frits Bolkestein last month that standards for the treatment of derivatives are still unsuitable for adoption, an IASB spokesperson told Risknews' sister publication FX Week .

Bolkestein, who in his role as European commissioner for the internal market, taxation and customs union has responsibility for accounting issues, had suggested that a working group might have to reconsider the standards before approval is given for adoption by all listed companies in January 2005.

The IASB is still considering the sensitive issue of macro hedging - where a whole portfolio of different instruments is hedged on a net basis - but aims to agree on the IAS 39 standards at a