Financial Times FT.com

Stop political pressure on accounting standard setters

Published: April 2 2009 03:00 | Last updated: April 2 2009 12:47

From Mr Hans Hoogervorst.

Accounting standard setters are under considerable pressure to change fair value practices. The main line of attack is that markets are so seriously dislocated, that ‘mark-to-market’ accounting is based on highly unreliable price information. Due to lack of liquidity, the argument goes, asset prices suffer from steep (but temporary) discounts which only serve to reinforce the current downward spiral in the markets.

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