I can’t help being a bit sarcastic here, but did you read the latest news about fair value accounting? Here it is:
IASB proposes shake-up of 'fair value' rules to boost transparency
The Financial Times, July 15, 2009
It’s a shake-up! It will boost transparency! … what a load of garbage!
IAS 39 is the IASB’s attempt at reconciling its international accounting standards with those put forward by the FASB (specifically FAS115 & FAS133). I think this “reconciliation” is a good thing. Keeping international and U.S. accounting standards on the same page is generally a good thing for everyone (investors, analysts, and regulators). But don’t try to sell me this “improved” transparency stuff.
FAS115 has been in place in the U.S. since May 1993 (that’s more than fifteen years ago). If adopting its principals, which IAS 39 is essentially doing, is so darn good at providing “transparency” then what happened? FAS115 was in-place long before the current U.S. economic implosion.
At least we get a cool new acronym, maybe I’ll make it into a bumper sticker.