Investors have welcomed a new paper published by the Global Public Policy Committee (GPPC) which aims to clarify the requirements for the valuation of financial instruments under the new International Financial Reporting Standards (IFRS).
The Investment Management Association (IMA) says a common approach to fair value accounting is needed in times of financial market turbulence and believes the paper will go some way towards achieving this.
Liz Murrall, senior adviser for corporate governance at the IMA, said: "The fact that the main practices have come together to draw up this guidance in advance of the year end is welcome."
She said that in the current economic climate where market volatility and uncertainty around valuations remains it is important that uniform standards are adopted.
The Association of British Insurers has also welcomed the publication of the paper, insisting greater clarify over financial instrument valuation under the IFRS has long been needed.
Peter Montagnon, the ABI's director of investment affairs, said: "The auditors have produced a clear statement of what the current standards require."
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