The International Accounting Standards Board (IASB) has come under fire for the lack of understanding of complex financial instruments evidenced in its proposals to set pan-European standards for how companies should treat derivatives in their accounts.

The International Swaps and Derivatives Association has suggested that not enough board members of the IASB understand derivatives and should attend education sessions which would allow informed proposals to be made. Their criticisms come as the IASB's governing body seeks comments ahead a five-yearly review of the standard-setting body.