EFRAG has distanced itself from suggestions that fair value valuations of assets should be 'smoothed' to ease the impact of the credit crunch.

Three members of the group, which advises the European Commission, made the suggestions in an article recently.

In a letter to the FT, where the comments appeared, EFRAG distanced itself from the comments made by Carsten Zielke, Michael Starkie and Thomas Seeberg and stressed the fact that their views did not represent the collective opinion of the body.

'EFRAG TEG has not discussed the so-called credit crunch issue or any of the other issues discussed in the article written by Messrs Zielke, Starkie and Seeberg and has never had any sort of vote on any of those issues. EFRAG TEG therefore has not formed a view on the issues.'

'Individual members of EFRAG TEG are not "EU advisers." It is EFRAG TEG as a body that is the "EU adviser", the letter said.

The credit crunch has battered banks but the fair value standards which apply to their disclosures have also come under fire, sparking calls for changes to the accounting framework.

EFRAG added: 'It is perhaps also worth noting that Stig Enevoldsen, chairman of EFRAG TEG, referred to the current market turmoil in a recent speech given to a private meeting of the European Investment Bank. In that speech, he explained that his personal view was that the situation is complex and attempts to find instant solutions could cause more harm than good. What is needed first of all therefore is a careful and comprehensive assessment of all the issues.'

Further reading:

Smoothed assets dismissed as a 'worse answer' to fair value