The IASB Are a Bunch of Pansy B*tches

Tuesday, October 20, 2009 , , , , 0 Comments

Fair value: do we or don't we? Well for the most part the IASB doesn't. Punk ass bitches, way to stay "independent", IASB. Pfft.


Reform of an accounting rule criticised for amplifying the credit crunch will be more extensive than originally proposed with many banks benefiting, a global accounting standard setter said on Tuesday.

The International Accounting Standards Board (IASB) published a draft change to narrow the scope of its fair value or mark-to-market standard in July. It seeks to classify assets for valuation either at cost or at the going rate.

The measure was in response to calls from the Group of 20 group of leading economies to simplify fair value accounting rules in time for 2009 annual statements.

Policymakers blamed the rule for unnecessarily forcing banks to value some assets at depressed going rates amid extreme market turmoil, triggering huge writedowns and the need to recapitalise in a frozen credit market.

IASB Chairman, David Tweedie, told a meeting of European Union finance ministers in Luxembourg on Tuesday that reform of asset classification will be adopted on time in November.

He also outlined several changes to the original proposal following extensive public consultation so that fewer assets will likely be marked-to-market.

"The IASB is making changes to its original proposals to address the issues that have been raised," Tweedie said.

More types of instruments will be eligible for valuing at cost than was originally proposed, he said.

"As a result, the final standard will likely result in financial institutions that undertake traditional banking activities of raising deposits and making basic loans applying less fair value accounting rather than more," Tweedie said.

*fapfapfap* try not to get any in your eye, Tweedie.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.