IASC to consider U.S. financial instruments standards.

According to Sir Bryan Carsberg, secretary-general of the International Accounting Standards Committee, the IASC staff h, Pro. posed that its board adopt -- on an interim basis -- the Financial Accounting Standards Board's rules on finanoial instruments reporting, including the forthcomng FASB standard on derivatives disclosure. The IASC board was expected to decide on the staff Proposal early this month.

By adopting the FASB standards, tbe IASC should be able to meet its goal of completing a core set of standards by April 1998. The IASC had reached an agreement with the International Oganization of Securities Commissions (IOSCO) in April 1995 to complete core standards the IOSCO could endorse for cross-border offerings and listings.

To fulfill its own due process requirements, the IASC board must first issue an exposure draft proposing the adoption of the FASB standards. Carsberg said he was confident the IASC board would approve such a draft.

IASC Project Manager Paul Pacter told the Journal that, although the IASC has never adopted another country's standards, he agreed with Carsberg it was likely the FASB standards would be adopted. "The only realistic way to fulfill our agreement with IOSCO is to adopt the U.S. financial instruments standards."

An interim solution

Carsberg emphasized that adopting the FASB standards would be only an interim step and the IASC would have to join with national standard setters, including the FASB, to develop a harmonized, comprehensive international standard on financial instruments.

Before disclosing the IASC board proposal, Carsberg had met with both FASB Chairman Edmund Jenkins and Securities and Exchange Commission Chief Accountant Michael H. Sutton to solicit their thoughts on the IASC's intentions. Jenkins called the proposal "a significant step toward the IASC's goal of developing a high-quality core set of international standards." The SEC has taken a more "wait-and-see" approach. Sutton told the Journal the SEC staff would continue to monitor the IASCs progress toward a core set of standards and provide input at the appropriate times.

More information on the financial instruments proposal, as well as the international accounting standards project, is available on the IASC Web site at http://www.iasc.org.uk.