Europe holds back from sweeping changes to fair value
IASB proposals receive backing as Europe holds back from carve out
European leaders will be advised to back IASB changes relaxing fair value
rules and ignore proposals for a sweeping carve that would have created massive
change to international standards, Reuters report
The carve out would have allowed all forms of financials assets to duck a
fair value calculation by being transferred from being held for sale to being
held for investment.
IASB plans allowed only for the reclassification of securities and not
controversial derivatives such as credit default swaps.
Leaders of the EU states will vote at a Council of Ministers today on the
IASB plans.
However the IASB, chaired by Sir David Tweedie, is not without its critics on
this point. Accounting consultant and blogger Jack Ciesielski writes: ‘The ”
held for trading” transfer exception sought by the Board only adds to the
complexity and inanity of attempts to mollify critics of fair value accounting
for financial instruments.’
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battles over fair value