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| Suspension of Fair Value Accounting: How Helpful is it to Banks? |
Page No. : 15
Total No. of Figures/Tables: 8
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About this research note
The current environment has made questions surrounding the determination of
fair value particularly challenging for reports preparers, auditors, and
users of financial information. There are a number of practice issues where
there is a need for immediate additional guidance. While some markets and
regulators are still debating whether they should suspend the use of fair
value accounting in the market turmoil, countries such as Singapore and the
Philippines have stopped using relevant rules from third quarter 2008.
Against this backdrop, this report identifies how the suspension influences
banks and to what extent it has helped banks. It evaluates current market
conditions and the appropriateness of using such rules in various economies.
It also identifies best practices banks have adopted in applying fair value.
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