EU told IASB's fair value option is the way ahead
Advisers signal that IASB trumps US version of fair value accounting
IASB headquarters, London
European Commission’s chief accounting advisory body has signaled its support
for the international fair value standard created in the wake of the crisis and
suggested it is a better option than the controversial US option being pushed in
Washington.
The comments, from
EFRAG
and sent to both the US and international standard setters, come as the first
indication that European commissioners could throw their weight behind fair
value being developed by the IASB as the basis for a ‘converged’ standard.
US standard setters have been working on a “full-fair value” model which
banks have argued would make their balance sheets more volatile. The IASB has
been building a “mixed measurement” solution, which many observers believe
better reflects the business model of banks.
The report from EFRAG said: “We are supportive of the broad direction set by
the IASB in its project to replace IAS 39 Financial Instruments: Recognition and
Measurement. Therefore, we believe that the directions set by the IASB should
form the basis for the development of a converged standard.”
Read more:
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EFRAG
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