Fair Value Accounting

Criticism of U.S. Accounting Changes Mounts
Wall Street lobbyists and U.S. politicians are damaging the credibility of corporate reporting and hurting the interests of investors around the world by pulling-back on fair value accounting, a top international accountant said. The comments from Tom Jones, vice-chair of the International Accounting Standards Board, come after U.S. standard-setters unilaterally decided to dilute the controversial accounting rule earlier this month. In an interview with the Financial Post, Mr. Jones warned of "a loss of credibility" and said the rationale for watering down fair value is "crazy." He also cited concerns about political interference that could undermine the independence of accounting rule setters, a fear that was echoed by other senior accountants Monday.