FASB defends fair value

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, reported.

CFA Institute CEO, Jeffrey Diermeier, said that 55% of respondents in a
survey said fair value requirements had aggravated the global credit crises.

Further reading:

Fair Value
Accounting Challenged

Related reading

Fiona Westwood of Smith and Williamson.