IASB issue draft guidline on ‘fair value’ rules
The International Accounting Standards Board (IASB) has published a draft guideline on one of the most controversial issues in financial reporting – ‘fair value’ accounting rules.
Fair value rules require banks and other financial institutions to value their financial assets at current market rates, rather than marking them up or down to suit their own interests.
A lack of fair value rules has been blamed by some as contributing to the huge losses recently made by banks.
“This exposure draft is an important milestone in our response to the global financial crisis,” said Sir David Tweedie, Chairman of the IASB.
“It proposes clear and consistent guidance for the measurement of fair value and also addresses valuation issues arising in markets that have become inactive.”
To view the full draft click here
