The Center for Audit Quality has joined with the Council of Institutional Investors and the CFA Institute to come out in opposition of suspending mark-to-market or fair value accounting.
The organizations, which represent the nation’s public company auditors, institutional investors and chartered financial analysts, maintain that suspension of fair value accounting during the current financial climate would “deprive investors of critical financial information when it is needed most.”
According to the organizations, fair value accounting is not the root cause of the current malaise on Wall Street, as its disclosures provide more accurate, timely, and comparable information to investors than amounts that would be reported under other accounting approaches.
Reportedly, the Securities and Exchange Commission and the Financial Accounting Standards Board are considering issuing additional guidance on using mark-to-market accounting.
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