Accounting rulemakers offer ‘fair value’ deal

Article reports that one of the most contested reforms to come out of the financial crisis could be rewritten after the accounting rulemakers IASB extended an olive branch to the insurance industry over the use of market-based bond valuations.

The International Accounting Standards Board was said to be looking at limiting the extent to which insurers will be obliged to recognise 'fair value' losses and profits arising from the fluctuating prices of financial assets that they hold.

After pressure from the European Commission, the rulemakers would re-examine whether insurers could keep these movements out of their income statements under new accounting rules, thereby making their profits less volatile.

Website: IFRS Foundation http://www.ifrs.org/Home.htm

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