The credit crunch and fair value - a special report

by Paul Grant

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10 Apr 2008

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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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