IASB vice-chairman says it is 'not acceptable' for banks to argue that instruments have become too complex to value
It is 'not acceptable' for banks to argue that debt instruments have become too complex to value in the credit crunch, the International Accounting Standards Board has said.
Tom Jones, the vice-chairman of the IASB, was quoted in the FT today showing frustration at complaints that banks could not mark the instruments to market, because there is no longer a market for them: 'You need fair value to get to the truth: the facts are the facts.'
'The idea of people selling compound instruments, then saying they're too complex to value in a credit crunch – that's not acceptable,' he said. 'People [should] take the writedown now and, if markets come around again, they can mark it up again.'
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