RegulationAccounting StandardsIFAC opposes any suspension of fair value

IFAC opposes any suspension of fair value

IFAC supports IAASB’s latest guidance on fair value accounting, but baulks at attempts to suspend it

The
International
Federation of Accountants
(IFAC) has voiced strong opposition against what
it sees as attempts to radically change or suspend the use of fair value
accounting without proper due process.

The federation warns against making changes at a national or regional level
which would ‘exacerbate reporting differences’ and further confuse financial
markets, resulting in a lessening of confidence in financial reporting.

Fermín del Valle, IFAC president, said this would be ‘exactly the opposite of
what is required in current circumstances. Reducing transparency is not the
answer…and it will not serve the interests of investors’.

IFAC believes the additional guidance from the International Accounting
Standards Board (IASB) and the United States Financial Accounting Standards
Board, as well as the International Auditing and Assurance Standards Board in
its Staff Audit Practice Alert, Challenges in Auditing Fair Value Accounting
Estimates in the Current Market Environment
, ‘has been very valuable and
will contribute to the public interest through more consistent application of
the standards’.

Further reading:

Investors: EC threatens transparency and comparability of
accounts

SEC to explore mark-to-market alternatives

Related Articles

EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

6d Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

1m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

2m Emma Smith, Managing Editor
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

5m Alia Shoaib, Reporter
Flag It Up! How accountants can protect themselves from money launderers

Accounting Standards Flag It Up! How accountants can protect themselves from money launderers

7m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

3m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

3m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

4m DAC Beachcroft