Lagarde calls for changes to fair value accounting

French plan to push for changes from the IASB during their forthcoming EU presidency

Written by Barbara Buchanan

Accountancy Age, 19 Jun 2008

France’s finance minister Christine Lagarde has said she would like to see amendments to international accounting standards on mark-to-market rules.

Her comments were made in an interview with the Financial Times and come just weeks before France takes up its EU presidency on 1st July.

Lagarde is to meet City financiers later today to discuss measures to help restore financial stability.

The French are amongst the most vociferous critics of fair value rules. There has been intense debate around the accounting in recent months, with some claiming the rules have accentuated downward spirals in asset values.

The International Accounting Standards Board said it was unable to comment about Lagarde’s controversial remarks.

However, it confirmed that its expert advisory panel, which includes the Big Four and major investment banks, met for the first time last week to discuss issues such as valuations in an 'illiquid' market.

The IASB believes that opposition to fair value is localised and is reluctant to bow to pressure to make changes.