IASB proposals receive backing as Europe holds back from carve out
Accountancy Age, 15 Oct 2008
European leaders will be advised to back IASB changes relaxing fair value rules and ignore proposals for a sweeping carve that would have created massive change to international standards, Reuters report
The carve out would have allowed all forms of financials assets to duck a fair value calculation by being transferred from being held for sale to being held for investment.
IASB plans allowed only for the reclassification of securities and not controversial derivatives such as credit default swaps.
Leaders of the EU states will vote at a Council of Ministers today on the IASB plans.
However the IASB, chaired by Sir David Tweedie, is not without its critics on this point. Accounting consultant and blogger Jack Ciesielski writes: 'The " held for trading" transfer exception sought by the Board only adds to the complexity and inanity of attempts to mollify critics of fair value accounting for financial instruments.'
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