Post by Sapphire Capital on Jul 15, 2008 21:01:01 GMT 4
UK, July 15, 2008
The International Accounting Standards Board (IASB) is to review its "fair value" policies for banks.
It has reiterated that the fair value notion, which dictates that assets are valued at marketplace levels, would not change but it will review how the value can be established in "an illiquid market", reports the Telegraph.
The IASB, which is responsible for global accounting rules, is conducting the review after critics condemned the scale of "credit crisis-related write downs at banks".
A panel met last month to discuss valuing illiquid assets and is due to continually meet over the coming months.
John Smith, a director of the IASB board, told the newspaper: "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."
It was recently revealed that Clive Briault, the managing director of the Financial Services Authority during the Northern Rock saga, was given over £500,000 compensation after leaving the regulator over the debacle.
The International Accounting Standards Board (IASB) is to review its "fair value" policies for banks.
It has reiterated that the fair value notion, which dictates that assets are valued at marketplace levels, would not change but it will review how the value can be established in "an illiquid market", reports the Telegraph.
The IASB, which is responsible for global accounting rules, is conducting the review after critics condemned the scale of "credit crisis-related write downs at banks".
A panel met last month to discuss valuing illiquid assets and is due to continually meet over the coming months.
John Smith, a director of the IASB board, told the newspaper: "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."
It was recently revealed that Clive Briault, the managing director of the Financial Services Authority during the Northern Rock saga, was given over £500,000 compensation after leaving the regulator over the debacle.