UK July 11, 2008
The principal body responsible for global accounting rules said it would not dilute the "fair value" standards that critics blame for increasing the scale of credit crisis-related write downs at banks.
The International Accounting Standards Board is pushing ahead with a process to review how the value of assets such as mortgage-backed securities can be established in an illiquid market.
But the rules on "fair value", which dictate that assets should be valued at the price they would fetch in the marketplace, will not change.
A panel established by the board to assess whether it can give companies more guidance on valuing illiquid assets met for the first time last month.
John Smith, a director of the board, said the panel was likely to meet again in the coming months, possibly several times.
There is no fixed timetable for meetings, however, or fixed objectives.
"If there's something to be done, we'd like to do it as quickly as possible. I couldn't tell you when but I would say this year clearly versus sometime further out," Mr Smith said.
Accounting rules drawn up by the board are used in more than 100 countries and are mandatory for companies listed in the EU.
The Institute for International Finance, a lobby group for financial institutions, has said there is a need to clarify some accounting rules.
[Source: The Telegraph]
-- Thanks & Regards
ABHASH KUMAR
JAB WE MET CA
REDEFINING PROFESSONALISM............
No comments:
Post a Comment