RegulationAccounting StandardsFair value suspension would be ‘obfuscation’

Fair value suspension would be 'obfuscation'

CFA Society says suspending fair value is not the way to restore market confidence

‘Obfuscation’ of accounts by suspending fair value is not the way to restore
market confidence, an investment group has said.

Writing
to the Financial Times
, the chair of the CFA society’s Accountancy Advocacy
Committee Jane Fuller said: ‘The message from the investment community is that
obfuscation is not the way to restore their precious confidence.’

Fuller said the SEC’s clarification had punctured some of the myths about
fair value accounting: ‘management’s cash-flow assumptions can be used to
establish fair value and that distressed sales do not represent the “orderly”
transaction between “willing” parties required for simple mark-to-market
valuations.’

‘Politicians should not turn a deaf ear to what the users of accounts want
and to the regulators’ attempts to help them get it,’ she added.

Further Reading:

Fair
value: victim of a witch hunt

Read
the letter to the FT

Related Articles

IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter
Former CFO joins IASB board

Accounting Standards Former CFO joins IASB board

1y Stephanie Wix, Writer
MEP calls for IASB pay cuts

Accounting Standards MEP calls for IASB pay cuts

1y Richard Crump, Writer
IASB issues amendments to insurance contracts standard

Accounting Standards IASB issues amendments to insurance contracts standard

1y Richard Crump, Writer
IASB chairman Hoogervorst to prioritise communication effectiveness of financial statements during second term

Accounting Standards IASB chairman Hoogervorst to prioritise communication effectiveness of financial statements during second term

1y Richard Crump, Writer
IFRS Foundation to cut board size and improve transparency

Accounting Standards IFRS Foundation to cut board size and improve transparency

2y Richard Crump, Writer
Indonesia set to achieve full IFRS convergence

Accounting Standards Indonesia set to achieve full IFRS convergence

2y Calum Fuller, Reporter
FASB publishes US leasing standard

Accounting Standards FASB publishes US leasing standard

2y Calum Fuller, Reporter