New chapter in fair value scrap
Two things to watch out for in the running battle over fair value. Today the US financial watchdog, the Securities and Exchange Commission opens a series of roundtables looking at fair value and whether it should go the way of all things.
At the table in Washington will be Tom Jones, vice chairman of the IASB, a supporter of fair value and no doubt their to defend the principle who would see it unceremoniously dumped.
He’s going to have to be careful because the IASB has recently been in the US gauging current support for a shift to international accounting standards in the wake of the credit crisis.
What the US decided on fair value will be crucial and there is still an appetite to be done with fair value even though events have moved on to somewhere else.
to follow the US hearing Sir David himself is set appear before the House of Commons Treasury committee, alongside Paul Boyle, CEO of the Financial Reporting Council.
This will no doubt see technicians attempt to question…er, those who are not technicians. If the MP sit down with a mind to rubbish the accounting (I think they’ll have a go) it could turn in to quite a spectacular clash. Sir David loves a brawl and the MPs of the Treasury committee are no shrinking violets.
Interestingly, with Paul Boyle in attendance, they might be a tempted to go beyond fair value and talk about audit and auditors in the credit crisis. Given he has already made supportive comments on this topic, they are unlikely to find themselves talking to someone ready to order a full scale witch hunt.