Uncertainty over the use of derivatives by European-listed financial groups and corporates is soon to be resolved by the International Accounting Standards Board (IASB). The London-based independent standards setter is due to announce its decision on rules for derivatives accounting – IAS 32 and IAS 39 rules – in the coming weeks.

The decision will be crucial for 7,000 listed corporates in Europe. From 2005, International Financial Reporting Standards will replace national rules across the EU and listed European companies will have to report under them. The aim of the new regulations is to raise and standardise the quality of financial reporting, make company accounts more transparent and prevent financial scandals.