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.
Comment & analysis
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