FASB defends fair value
14 Apr 2008, Penny Sukhraj, AccountancyAge
http://www.accountancyage.com/aa/news/1771106/fasb-defends-fair-value
Technical staff of the US Financial Accounting Standards Board defended fair value over the weekend, amidst questions raised by the senior figures.
'We believe fair value gives you more transparency into the underlying assets,' FASB technical director Russell Golden said.
The standard has come under fire from US investment banks other financial institutions as caused large writedowns during the global credit crunch, WebCPA.com reported.
CFA Institute CEO, Jeffrey Diermeier, said that 55% of respondents in a survey said fair value requirements had aggravated the global credit crises.
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Visitor comments
Emperors Clothes
The small boy in Hans Andersen's story about the Emperor pointed out what all could see but no-one dared to say, 'The Emperor has no clothes.' Reality was and still would be embarrassing but that is no reason for denying it. Banks who do not apply fair value sound too much like confidence tricksters.
Posted by: John Pope , 14 Apr 2008 | 00:00