LONDON, July 14 (Reuters) - The International Accounting Standards Board on Tuesday published draft plans to simplify its fair value rule that has been criticised by European Union finance ministers for amplifying the financial crisis.
"The proposals, which the IASB believes will significantly reduce complexity and make it easier for investors to understand financial statements, address how financial instruments are classified and measured," the IASB said in a statement.
"The proposals also answer concerns raised by interested parties during the financial crisis," it added.
The IASB plans to complete the replacement of the whole fair value rule, known as IAS 39, during 2010 although mandatory application will not be before January 2012. The IASB's rules are used in over 100 countries by all listed companies, including in the 27-nation European Union. (Reporting by Huw Jones, editing Chris Pizzey)