SEC announces fair value roundtable

The US regulator is set to thrash out the challenges and benefits of fair
value accounting and auditing standards next month.

Securities and Exchange Commission chief accountant Conrad Hewitt announced
the July 9 roundtable, which is intended to facilitate open discussion on the
contentious standard.

‘This roundtable will provide an excellent opportunity for investors,
preparers, auditors, regulators and other interested parties to provide the
Commission and other observers with input into the usefulness of fair value
accounting in the current marketplace,’ said Hewitt.

The roundtable will constitute two panels who will discuss fair value
accounting issues from the perspective of larger financial institutions and the
needs of their investors and that of public companies, including small public
companies, and the needs of their investors.

The panels will be made up of investors, preparers, auditors, regulators and
other interested parties, whose discussions will focus on the usefulness of fair
value accounting to investors; the potential market behavior effects from fair
value accounting; practical experience and potential challenges in applying fair
value accounting standards; aspects of the current standards, if any, that can
be improved, and experience with auditors providing assurance regarding fair
value accounting.

Representatives from the Financial Accounting Standards Board, International
Accounting Standards Board and Public Company Accounting Oversight Board will
also be present.

Further reading:

Lagarde calls for changes to fair value accounting

City bonuses face fair value reckoning

Bonderman slams fair value

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