This Reuters.com article discusses a proposed new accounting rule set to hit the international rule books that has several European institutions in an uproar. The proposed rule deals with the reporting of derivatives and while it wouldn't immediately affect our FASB standards, the day when international standards are formed and accepted draws closer.

The new IAS 39 forms part of the International Accounting Standards Board's revised global rule book, which is set to be adopted by the European Union's listed firms next year.

Fiercely opposed by many European banks and insurers, it will require companies to book all derivatives and some of their major assets at market value and could send their profits on a roller-coaster ride. For firms sitting on over-valued investments in shares and bonds, it could lead to big losses.