The new IASB chair will have many countries to please. Diplomatic skills will be at a premium in both positions. Although he heads Britain's Accounting Standards Board, he is a New Zealander (continental Europeans do not want another Brit like Sir David). Many think, therefore, that Mr Herz's departure may allow for a consensus-seeker to emerge as his replacement.Īt IASB, meanwhile, Ian Mackintosh is whispered to have the inside track to replace Sir David. The “big four” accounting firms (PricewaterhouseCoopers, Ernst & Young, KPMG and Deloitte), not to mention companies of all types with international reach, are on IASB's side. That proposal is now subject to public consultation, and the comments coming in are skewed towards IASB's approach, not FASB's. Mr Herz broke a 2-2 tie to vote for the reporting-standards proposal that leant heavily towards fair value. But an expansion of the board from five members to seven in 2011 could be significant. His replacement as acting chair, Leslie Seidman, is already a board member. Mr Herz's empty seat at FASB will be filled by an insider, FASB's technical director.
IASB has taken a two-category approach, saying that loans and loan-like equivalents held to maturity may be marked at amortised cost, whereas frequently traded instruments should be marked to market. But in its most recent proposals fasb dug in its heels, calling for most of them to be given at fair value. Some of those opponents were members of Congress who hauled Mr Herz in to testify last year, leading to a partial climbdown on fair value. Opponents think that revaluing seldom-traded assets during market meltdowns makes banking crises more likely and more severe. Mr Herz firmly backed fair value, arguing that doing otherwise made financial trickery easier.
#BEANCOUNTER ACCOUNTING HOW TO#
The most controversial issue in that process is how to report financial assets: whether at fair-market value or amortised cost.
0 kommentar(er)
