IAS 39 pushes Europe back to basics

Under International Accounting Standard 39, implemented in January, listed European companies are required to mark-to-market their derivatives positions, with any changes in value reported on the profit and loss (P&L) statement. It has already had an impact on the interest rate derivatives landscape, with many corporates, financial institutions and asset managers still coming to grips with the operational and bookkeeping aspects. "There has been a rush to plain vanilla strategies, similar to