Board members suggest managers might be using 'delaying' tactics
Accountancy Age, 19 Oct 2007
The US standard-setter has decided against giving companies a 12-month extension for the application of fair value.
The Financial Accounting Standards Board has instead decided to maintain the effective date of November 15, from which the standard becomes effective.
FASB board members decided on Wednesday that a 'wholesale' deferral of the standard – which allows valuation based on current market estimates rather than historical costs – would overly delay implementation and wouldn't necessarily allow corporates to be better ready to comply with the standard.
Board members also suggested the request for delay – by the IMA and Financial Executives International – could be managers engaging in a delaying tactic.
Board members said they were, however, open to deferring the standard for private and smaller public companies.
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