PracticeAuditUS watchdog begins fair value education drive

US watchdog begins fair value education drive

Executive education events open with focus on fair value accounting

US financial watchdog, the SEC, is to begin a campaign of executive education
by focusing on fair value accounting, one of the most controversial topic in
board rooms struggling with the effects of the credit crunch.

SEC commisioner Paul Atkins will headline a conference for CEOs and CFOs at
the University of South Florida alongside Edward Trott of FASB, the US’
accounting standard setter working in tandem with the IASB.

The agenda is expected to be pro fair value at a time when many in corporate
America, as well as the UK, have thrown doubt on its ability to properly reflect
true financial positions.

Michael Mard, a valuation expert who will lead several
workshops at the event, agrees that the topic is timely and quoted Bear Stearns
as an example of the need for pinpoint financial reporting. Ahead of the
conference he said: ‘Did Bear Stearns collapse because $46bn of assets were
marked to fair value, $17bn of which was at the lowest Level 3 of reporting? Or
did it collapse because its financial reporting did not show the extent of its
dependency on sub-prime mortgages and hedge fund calls and thus was not
transparent enough?’

Atkins was once a partner at PwC in advisory while Trott was at KPMG for 30
years and led the firm’s national accounting group.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

3d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter