§ Mr. WillettsTo ask the Secretary of State for Trade and Industry what representations the Government has made to the European Commission in respect of(a) IAS 39 and (b) IAS 32; what assessment she has made of their impact on British (i) insurance companies and (ii) pension schemes; and if she will make a statement. [172916]
§ Jacqui SmithThe Government have made it clear to the European Commission that the adoption of all standards is essential to the success of the EU's approach to accounting harmonisation. It would be difficult for Europe to maintain international credibility without key standards on financial instruments.
We accept that IAS 32 and 39 are not perfect standards, but experience from countries where similar standards are in use show that concerns about their impact are exaggerated. Discussions with the British insurance industry indicate that companies are primarily concerned now to get the finalised standards in place so they can move forward. IAS 32 and 39 are not expected to have any particular impact on pension schemes.