Fair value proposals should be harmonised: E&Y
IASB and FASB should co-ordinate fair value projects
The US and international accounting rules maker should harmonise their fair
value revisions, a big four firm has said.
Accounting firm Ernst & Young, said both the US’ Financial Accounting
Standards Board (FASB) and the International Accounting Standards Board (IASB)
should head off criticism of an uneven playing field by coordinating their fair
value projects.
FASB and the IASB are trying to converge US accounting rules with
international standards.
An outstanding criticism from some in Europe is that the differences between
the two systems results in an uneven playfield, with companies in the US
benefiting from a softer accounting treatment, in the area of valuation.
Ruth Picker, Global Leader of IFRS at E&Y, said an approach needed to be
found which balances the interests of all stakeholders.
“Overall, we believe our suggested way forward achieves both of these
objectives simultaneously,” she said.