FASB defends fair value
'We believe fair value gives you more transparency into the underlying assets' - FASB
Technical staff of the US Financial Accounting Standards Board defended fair
value over the weekend, amidst questions raised by the senior figures.
‘We believe fair value gives you more transparency into the underlying
assets,’ FASB technical director Russell Golden said.
The standard has come under fire from US investment banks other financial
institutions as caused large writedowns during the global credit crunch,
CFA Institute CEO, Jeffrey Diermeier, said that 55% of respondents in a
survey said fair value requirements had aggravated the global credit crises.