(5)IAS 39 introduces an option to fair value all financial assets and liabilities without any restrictions. However, the IASB has recently published an Exposure Draft (a consultative paper) which proposes an amendment to IAS 39 in order to restrict the fair value option contained in the standard. The proposed amendment is a direct response to concerns expressed by the European Central Bank, by prudential supervisors represented in the Basel Committee as well as by securities regulators of the Member States who are concerned that the fair value option could be used inappropriately, in particular in the case of a company’s own liabilities. The Commission considers these questions as important and requiring further examination. The IASB has received many comments on this proposed amendment and is expected to take a final decision on this issue by the end of 2004. The Regulation permits the fair value option to be applied to financial assets. However, in the case of financial assets that are not traded in active and liquid markets, companies should take care to apply the fair value option to financial assets in a way that leads to reliable measurement.