Sugar Bowl tickets recent statements by the President of the IASB

Sugar Bowl tickets "It is completely abnormal that the public interest is absent from the process of accounting standards."It is by this conclusion that Didier Marteau, Professor at the ESCP, believes that the governance of the IASB should be reformed, joining the opinion of many French financial institutions and Bercy. In full debate on the responsibility of accounting standards in the financial crisis, Christine Lagarde, Minister of economy and finance, appointed in August last Pascal Morand, Director of the ESCP Europe, and Didier Marteau, Professor at the ESCP Europe and Director associated with Aon, a report to provide an "academic and cross-reflection" on the issue of IFRS. Released Friday, this report focuses on an analysis of broader than simple accounting principles, that he do not not however question, essentially on the principle of the "fair value". "The assimilation of the"fair value"to the market price is acceptable under two restrictive conditions: valued assets are assets of trading and the market is liquid.". It is economically wrong to apply a price from a low volume of transactions to the stock of assets in portfolio. It is absurd to apply a market price to the value of an asset that you intend to bring to maturity. "This is what has been done during the crisis and which partly explains its magnitude," explains Didier Marteau "Echos".

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Starting from the premise that such accounting standards currently defined by the IASB and refer to the General principles of the FASB, its American counterpart, see the company only as a simple "portfolio of assets and trading liabilities on a market", Didier Marteau proposes that a supranational instance Vienna to question this assumption. "If such a body, at the beginning of the crisis, had authorized the banks to temporarily change the scope and the modalities of implementation of the"fair value", the crisis would probably not have had the same magnitude", believe. If the current organization of the standardisation system must be maintained, it considers that a more significant presence of the European Union must be carried out in the Council of the IASB. It also proposes the creation of a "high authority for development, public entity involved in possible support of firms to audit and valuation disputes, more and more".

The report also began a reflection on the scope of intervention of the Auditors and Auditors to validate valuation applied by the banks during the crisis on their portfolios have become illiquid. It notes as well as the development of the market for OTC structured products, since the beginning of the 2000s, highlights the issue of the scope of responsibility of the Board of Auditors, "which cannot be, except to consider a considerable strengthening of their means, the validation of each value, even global portfolio.

The IASB should in part to answer these questions mid-November with the amendment to the valuation of financial assets IAS 39 standard.

Sugar Bowl tickets For Didier Marteau, recent statements by the President of the IASB, David Tweedie, at the last Ecofin to Luxembourg ("Les Echos" from October 21) - including "amortized cost accounting is appropriate for certain financial instruments" and "it there will be more eligible instruments an evaluation at historical cost what was proposed in the last project"-, could go in the right direction.