THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards(1), and in particular Article 3(1) thereof,
Whereas:
(1) By Commission Regulation (EC) No 1725/2003(2) certain international standards and interpretations that were extant at 14 September 2002 were adopted.
(2) On 20 July 2006, the International Financial Reporting Interpretations Committee (IFRIC) published IFRIC Interpretation 10 Interim Financial Reporting and Impairment, hereinafter ‘IFRIC 10’. IFRIC 10 clarifies that impairment losses on goodwill and certain financial assets (‘available for sale’ equity investments and unquoted equity instruments measured at cost) that are recognised in an interim financial statement must not be reversed in subsequent interim or annual financial statements. The interpretation was required due to an apparent conflict between the requirements of International Accounting Standard (IAS) 34 Interim Financial Reporting and those in IAS 36 Impairment of assets, and the impairment provisions related to certain financial assets in IAS 39 Financial instruments: Recognition and measurement.
(3) The consultation with the Technical Expert Group (TEG) of the European Financial Reporting Advisory Group (EFRAG) confirms that IFRIC 10 meets the technical criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.
(4) Regulation (EC) No 1725/2003 should therefore be amended accordingly.
(5) The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,
HAS ADOPTED THIS REGULATION:
OJ L 261, 13.10.2003, p. 1. Regulation as last amended by Regulation (EC) No 1329/2006 (OJ L 247, 9.9.2006, p. 3).