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