Responding to the
IASB paper on fair value measurement the European banking industry criticizes that the “one size fits all” approach as used in the discussion paper may be a poor fit. The banking groups, namely EBF, ESBG, EACB, and EAPB, believe that a single rule can not apply to every circumstance where
IFRS requires the use of fair value.
The organisations also disagree with the assumption that fair value should always be an exit price.
Underlining the importance of the convergence efforts made by the IASB and the FASB the group reminds that the FASB has published a Fair Value Measurement standard of its own already in September 2006, “which formed the basis for publication of this discussion paper dealing with various fair value measurements’ issues”.
“We feel that the standard adopted by the FASB has already set the course for the planned IASB standard to a large extent”, the group states. “We feel it would be better if discussion papers on such fundamentally important accounting principles were published simultaneously by both standard-setters.
Comment letter
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