The credit crunch has created intense debate about the role of fair value accounting in the reporting of the financial services industry. Last week the IASB eased its fair value rules in illiquid markets, allowing more instruments to be accounted for at "amortised cost". This did not appear to be enough for some in the European Union who want a further relaxation of the rules.One can understand why some are reacting in this way, but there comes a point where change can undermine the reporting model and create less rather than more certainty in the market.
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