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The International Federation of Accountants strongly opposes attempts to change more radically, or to suspend, the use of fair value accounting without adequate due process. In particular, IFAC considers that making changes at a national or regional level that exacerbate reporting differences would serve to further confuse financial markets and would result in a reduction of confidence in financial reporting - exactly the opposite of what is required in current circumstances.
"Reducing transparency is not the answer," says IFAC President Fermín del Valle, "and it will not serve the interests of investors."
IFAC believes that the additional guidance given to those applying both accounting and auditing standards relating to fair values has been very valuable and will contribute to the public interest through more consistent application of the standards. This guidance has come from the IASB and the US FASB, as well as from the IAASB in its Staff Audit Practice Alert, Challenges in Auditing Fair Value Accounting Estimates in the Current Market Environment.
Challenges in Auditing Fair Value Accounting Estimates in the Current Market Environment