‘Obfuscation’ of accounts by suspending fair value is not the way to restore
market confidence, an investment group has said.
Writing
to the Financial Times, the chair of the CFA society’s Accountancy Advocacy
Committee Jane Fuller said: ‘The message from the investment community is that
obfuscation is not the way to restore their precious confidence.’
Fuller said the SEC’s clarification had punctured some of the myths about
fair value accounting: ‘management’s cash-flow assumptions can be used to
establish fair value and that distressed sales do not represent the “orderly”
transaction between “willing” parties required for simple mark-to-market
valuations.’
‘Politicians should not turn a deaf ear to what the users of accounts want
and to the regulators’ attempts to help them get it,’ she added.
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