The quest for international accounting harmony is full of bum notes and there is likely to be more discord this year over one of the most vexing issues—fair value measurement.
Two years ago, when the debate about the best way to measure fair value last came to a head for European companies, a political compromise resulted in a watered down application of fair value. Now it appears that the standard-setters at the IASB will push for full fair value measurement, although the FASB in the US is only this year moving to an optional fair value model.
The result, at least in the near term, will be further confusion, says Bridget Gandy, a London-based analyst at Fitch Ratings and a member of the IASB’s advisory committee on performance reporting.
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