Markets need more information: Herz
FASB chief said increased transperency could avoid another crisis
The head of the US accounting rule maker believes greater transparency is
needed to head off another possible crisis.
Robert Herz, chairman of the Financial Accounting Standards Board (FASB),
Nashville Business Journal more information should be made available to
“(Information) is the oxygen of capitalism,” Herz said. “When you pollute
that information,there are always bad consequences.”
FASB is currently examining a new fair value proposal – the accounting
principle blamed for exaggerating the effects of the credit crunch by forcing
companies to value financial assets in stagnant markets.
The FASB approach would result in all assets valued at fair value, in
contrast to the international approach where banks loan books would be exempt.
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Herz of FASB: Transparency needed to avoid another crash