PwC head defends fair value rules

Accountants risk being sued into collapse and investors could lose vital
information if policymakers emphasise the importance of financial stability over
transparency, according to Samuel DiPiazza, head of PricewaterhouseCoopers, the
Financial Times reported.

His comments come as politicians and regulators are drawing up a new
framework for financial regulation to avoid a repeat of the recent market

Many have blamed ‘fair value’ accounting rules for exacerbating the losses of
banks by forcing them to report the value of their assets to reflect current
market prices.

However, DiPazza told the FT that fair value rules helped provide
transparency to investors. ‘A loss of focus on transparency means the risk of
litigation goes up because every time there’s a failure the question will be
‘where were the accountants, why wasn’t this transparent’?’

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underlines importance of transparency

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