Tweedie picks up fair value reform pace

Tweedie picks up fair value reform pace

Tweedie tells European finance ministers he is on track to reform fair value and impairment rules in the wake of the banking crisis

Sir David Tweedie has said he is on track to reform controversial fair value
and impairment rules in the wake of the banking crisis, in an address to
European finance ministers on Tuesday.

The IASB chairman said that he had heard European concerns over ‘the pace and
substance’ of reform and promised to work harder to keep finance ministers
informed.

‘The IASB is committed to the timeline it has laid out. A new standard that
deals with your concerns will be in place by year-end,’ he said.

His address came in a week which has seen increased pressure from European
finance figures unhappy with the IASB’s performance.

An unnamed senior source close to the European Commission told The Guardian
last week there were questions as to whether ‘the IASB is the right body for
future rule setting’.

Speaking in Luxemburg, Sir David said the IASB needed to do a ‘better job in
taking the views of ECOFIN, central banks and prudential supervisors into
account’.

‘The IASB understands that the EU finance ministers have expressed an
increasing level of concern regarding the pace and substance of our response to
the issues raised by the European Commission,’ he said. ‘We take these concerns
very seriously.’

ICAEW director of communications, Harry McAdoo, warned the drive toward
global financial standards should not be lost due to ‘short-term political
expediency in Europe’.

‘To criticise accounting standards for the purpose of valuing financial
instruments is to shoot the messenger at a point in time when that financial
information could not be more important,’ he said.

Criticism of the IASB has focused on the controversial IAS 39 principle which
requires financial institutions to value assets on their fair value and is
thought by some to have exacerbated the banking crisis.

In April the board said it would conduct an ‘urgent review of IAS 39’ and
announced a series of live webcasts aimed at seeking feedback on the proposed
changes.

Sir David’s comments coincided with a statement of support from the
International Accounting Standards Committee Monitoring Board, which was created
in January to provide public oversight on IASB’s operations.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource