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The credit crunch and fair value – a special report

When fair value accounting was first brought in by the International
Accounting Standards Board a few years ago, there was some grumbling about the
volatility it would introduce, but in a buoyant economy it made company figures
look good, so the matter passed.

But with the credit crunch now in full swing the matter has been brought to a
head as figures take a turn for the worse. Companies, regulators and politicians
are all attacking the accounting method, banks are making huge write downs in
their books and accountants are taking some of the flak for it. Should companies
simply ride out the current economic storm, or should fair value be replaced
with a ‘fairer’ method of accounting.

Click on the links below to read the latest news, comment and features on
this volatile subject.

News

Prudential
takes £459m fair value hit

FASB
defends fair value

US
banks prepare for further writedowns

FSF
urges IASB to fix off balance sheet rules

EU
adviser distances itself from ‘smoothing’

Smoothed
assets dismissed as a ‘worse answer’ to fair value

IIF
report urges accounting rule changes

IMF
calls for fair value review

IMF
blames $1trillion credit crisis on lax financial rigour

Citigroup’s
audit committee head to step down

Bank
of Scotland chief warns fair value could lead to recession

Co-op
struck by £32m writedown

Credit
crunch sparks fair value revolt

EC
advisers urge fair value rethink

Rock
shareholders blast bank on aggressive writedowns

Lawyers
are predicting a flood of claims

SEC
tells companies to lift lid off fair value

Watchdogs
push for accounting rules review

IASB
defends use of ‘fair value’ accounting

FSA
holds crisis meetings on ‘fair value’

Comment & analysis

Fair
value: what lies beneath?

Don’t
blame the messenger

All
the fun of the fair!

Fair
value: standard scapegoat

Blaming
fair value – is it a fair cop?

Adieu
to fair value?

Finance:
have a confident approach

SEC
pushes for more credit crunch disclosures

Features

Credit
crunch special: private equity

Credit
crunch special: liability crunch


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