US Congress to discuss fair value rules...
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Possible changes to fair value accountancy rules are set to be debated by the US House of Representatives. Read original article.
The rules, which are also known as mark-to-market regulations, have proved controversial in the wake of the economic downturn, with some claiming they are partly to blame for the liquidity problems facing banks.
Congressman Paul Kanjorski, who is to convene a meeting by the House Financial Services Subcommittee on the matter, explained that although there are currently problems with valuing sizable assets, this does not necessarily mean the rules should be scrapped.
He said: "While companies need stability, investors still need accurate information. We therefore cannot allow for fantasy accounting that wishes away bad assets by merely concealing them."
The subcommittee meeting will take place on Thursday March 12th.
Last week, the International Accounting Standards Board made changes to International Financial Reporting Standard 7 which relates to fair value practices, to bring it into line with the equivalent US rule.
The rules, which are also known as mark-to-market regulations, have proved controversial in the wake of the economic downturn, with some claiming they are partly to blame for the liquidity problems facing banks.
Congressman Paul Kanjorski, who is to convene a meeting by the House Financial Services Subcommittee on the matter, explained that although there are currently problems with valuing sizable assets, this does not necessarily mean the rules should be scrapped.
He said: "While companies need stability, investors still need accurate information. We therefore cannot allow for fantasy accounting that wishes away bad assets by merely concealing them."
The subcommittee meeting will take place on Thursday March 12th.
Last week, the International Accounting Standards Board made changes to International Financial Reporting Standard 7 which relates to fair value practices, to bring it into line with the equivalent US rule.
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