Fair value suspension branded 'stupid'
Accounting and valution analysts voice alarm at the prospect of a suspension in fair value
Accounting and valution analysts voice alarm at the prospect of a suspension in fair value
Analysts have said that the possiblity of fair value being dropped in one
part of the world while it still operates in another is ‘stupid.’
The move has been ruled out in Europe for now, but might still happen in the
US. The prospect of having a suspension in fair value in one jurisdiction while
it still operates in another would cause serious comparability problems for
end-users.
‘Would you have [mark- to market suspended] just in the US, just in the UK,
or just in my office? There would be no comparability.’ said Peter Elwin head of
accounting and valuation research at Cazenove Equities. ‘How stupid is that?’
His comments were made at PricewaterhouseCoopers’ Meet the Experts event in
London, which also heard from Bob Herz, chairman of FASB.
‘Suspending fair value is completely the wrong thing to do,’added Elwin.
Sarah Deans of JP Morgan called for fair value rules to be toughened not
relaxed. The chartered accountant said: ‘ We should have more fair value for
financial instruments not less. I am very alarmed at the proposals. I would
rather have fair value than what someone thinks or hopes what something might be
worth.’
More about:
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resource75% of FTSE 350 audits assessed as good or requiring limited improvements, failing to meet the FRC's 90% target Read More...
View articleTrimble Real Estate & Workplace Solutions report on what has been learned so far on the road to FASB/IASB lease accounting compliance Read More...
View articleCraig Gillespie, business area director, Trimble Real Estate & Workplace Solutions, helps you navigate the latest changes Read More...
View articleCraig Gillespie, Business Area Director for Real Estate at Trimble details the implications of the new rules Read More...
View articleThe FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances' Read More...
View articleThe London School of Business & Finance has become the official provider of ACCA tuition materials for the PwC CEE Academy Read More...
View articleMany working in professional services have received honours this new year from the Queen Read More...
View articleLong-serving PwC director Fiona Westwood has moved to Smith & Williamson and stepped up to partner Read More...
View article