Directive prepares for 2005

The EU has published its Fair Value Directive (2001/65/EC), which forms part of the process to change the EU's legal framework in order to allow EU-listed companies to adopt International Accounting Standards by 2005.

The directive amends both the Fourth and Seventh Company Law Directives as regards the valuation rules for companies' and groups' annual accounts, as well as those of banks and other financial institutions.

In essence, the amendment allows for a move away from the historical cost model for the valuation of certain financial instruments towards a fair value model, in line with International Accounting Standards.

Download the directive from market.

Be the first to vote

Rate this article

Related Articles