Senior investors and
financial analysts have warned that revisions to accounting rules on how to value assets are threatening to undermine investor confidence, according to the Financial Times.
Fair value accounting rules mean that companies must mark most financial instruments at their market value but the present illiquid market means that values have decreased with banks and insurers being pushed into large writedowns.
Members of the Corporate Reporting Users Forum are holding a meeting today to compile a list of appropriate changes they would like to see, which will be presented to the International Accounting Standards Board (IASB).
According to the newspaper, the meeting is likely to discuss calls for more instruments to be accounted for at amortised cost rather than fair value, which would help smooth institutions' balance sheets.
Meanwhile, EU regulators have backed proposals to reform mark-to-marketing accounting rules which have been blamed for banks having to declare larger writedowns, according to the Independent.
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