News Article - 16 July 2008
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The International Accounting Standards Board will not climb down on its much-criticised "fair value" standards, despite pressure from banks.

In recent months the controversial rules have been blamed for increasing the scale of credit crisis-related writedowns at banks, reports the Daily Telegraph.

They demand that assets be valued at the price they would fetch in the marketplace.

While these standards will remain fixed, the accounting body is reviewing how the worth of assets such as mortgage-backed securities can be assessed in an illiquid market.

John Smith, a director of the IASB board, tells the newspaper a panel set up by the organisation to give companies more guidance in this area will meet again shortly.

In other news that may interest firms looking for accounting software, a letter published in the Financial Times last week by the director of SwissHoldings insisted the IASB "is not reflecting business reality in many areas".

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