Companies: valuation of annual and consolidated accounts, financial information (amend. Directives 78/660/EEC, 83/349/EEC)

PURPOSE: To amend Directives 78/660/EEC, 86/349/EEC and 86/635/EEC concerning the valuation rules for the annual and consolidated accounts of certain types of companies as well as of banks and other financial institutions. COMMUNITY MEASURE: Directive 2001/65/EC of the European Parliament and of the Council. CONTENT: Historical accounting methods for the valuation of financial instruments such as shares, bonds, futures, options, forward contracts and swaps, are moving towards a new form of model for fair value accounting. In line with this development, the International Accounting Standards Committee (IASC) has been devising new international accounting standards taking account of such changes. It is of great importance thus that EU legislation keep abreast of these changes to ensure that, where necessary EU accounting laws remain consistent with the international scene. This new Directive allows European companies to report in conformity with current international developments as regards fair value. Essentially the purpose is to allow the application of the international accounting standard dealing with the recognition and measurement of financial instruments. ENTRY INTO FORCE: 01/01/2004.�