Introductory text

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^f1, and in particular Article 3(1) thereof,

Whereas:

By Commission Regulation (EC) No 1725/2003^f2 certain international standards and interpretations that were extant at 14 September 2002 were adopted.

On 12 January 2006, the International Financial Reporting Interpretations Committee (IFRIC) published IFRIC Interpretation 8 Scope of IFRS 2. IFRIC 8 clarifies that the accounting standard International Financial Reporting Standard (IFRS) 2 Share-based Payment applies to arrangements where an entity makes share-based payments for apparently nil or inadequate consideration.

On 1 March 2006, IFRIC published IFRIC Interpretation 9 Reassessment of Embedded Derivatives. IFRIC 9 clarifies certain aspects of the treatment of embedded derivatives under IAS 39 Financial Instruments: Recognition and Measurement.

The consultation with the Technical Expert Group (TEG) of the European Financial Reporting Advisory Group (EFRAG) confirms that IFRIC 8 and IFRIC 9 meet the technical criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.

Regulation (EC) No 1725/2003 should therefore be amended accordingly.

The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,

HAS ADOPTED THIS REGULATION: