IASB clarifies press report on fair-value accounting
16 January 2006
Following the report “IASB yields and agrees to reopen valuation debate”, published on January 12 in the Financial Times , the IASB Vice Chairman has written to the editor to clarify that the IASB is exploring with FASB accounting for fair-value accounting as part of a wider project on measurement. It is in the context of this long-planned effort, and not some recent reaction, that the IASB is planning to and will explore issues related to fair-value accounting. The IASB hopes this letter will allay any misunderstandings that the report may have caused.
The full text of the letter is published below:
Sir, The headline and first paragraph of “IASB yields and agrees to reopen valuation debate” (January 12) provides a misleading impression of my views and of the position of the International Accounting Standards Board (IASB) as it relates to fair value accounting.
Last year, the IASB and the US Financial Accounting Standards Board (FASB) initiated a joint project to review elements of financial statements and their measurement and to bring about convergence of their respective Conceptual Frameworks. As part of the project, we have always intended to explore issues related to measurement, a topic on which both of our Frameworks are largely silent. It is in the context of this long-planned effort, and not some recent reaction, that we were planning to and will explore issues related to fair-value accounting.
As is our practice, we will seek to consult the many interested parties from the nearly 100 countries throughout the world using international standards in our ongoing discussions on the revision of our Framework and other matters.
Tom Jones
Vice Chairman
International Accounting Standards Board
London , EC4M 6XH