Fair Value, IFRS & The US: Where It's All Going: Like it or not, financial accounting affects the way investors do their homework in making investment decisions - and in turn, the standard setters who generate accounting rules affect financial accounting. Investors concerned about the way accounting standards and standard setters will affect their work should be on the edge of their seats this month. While this September may not be showing its characteristic market volatility, things are rocking in accounting-land.
Investors are suffering accounting fatigue from the ongoing (un)holy war over fair value reporting, yet they’re perpetually curious about whether U.S. accounting standards will go the way of the dodo bird if International Financial Reporting Standards become the American measure. Financial instruments proposals from the IASB and the FASB will be a topic at this week’s Pittsburgh G-20 summit, and the discussion could define the role that fair value accounting will play in future financial reporting - and the fate of independent U.S. accounting standards.