RegulationAccounting StandardsBonderman slams fair value

Bonderman slams fair value

Private equity boss criticises the effects of the accounting standards which have been brought into sharp relief by the credit crunch

David
Bonderman
, the private equity billionaire has panned fair value accounting
standards.

The buyout veteran called the accounting policies ‘absurd and destabilising,’
in an interview with the
Financial
Times
.

Bonderman’s made the criticism because of the effects that the fair value had
on the worth of the debt of his companies in the current volatile financial
climate.

Under the accounting standards, Bonderman criticised the fact that debt
holders would appear to get less money back than they originally invested as
values are adjusted to reflect current market prices.

‘The accounting policies are absurd and destabilising,’ said Bonderman.

After criticisms from stakeholders, the SEC recently said that it is to hold
a round table on fair value accounting which will take place on 9 July.

Further reading:

SEC
fair value summit

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

5d Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

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

4m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m 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

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter