Sarah Johnson, CFO.com | US
May 30, 2007
It is our experience (www.saai.com), that only the largest of insurers are 'considering' FAS 159 and that most are taking more of a 'wait and see' attitute than those noted by the PwC conference attendees.
Posted by Alton Cogert | May 31, 2007 1:10 PM ET
The survey results actually surprised me. Only 11% are saying they will not use the 159 option. After the Enron, and WorldCom scandels, primarily resulting from fair value accounting, I would have thought that the CFOs would have proven more conservative.
In addition, the disclosures require a hefty amount of proprietary information being disclosed, which I thought would heighten the hesitation.
It will eventually be determined that fair value accounting, in the real world, is more misleading than enlightening. Particularly this version, that doesn't even pretend to be realizable value in a market exchange. It is merely an exercise in mathematics, and should not be used to muddy the financial statements.
Posted by Charles Smith | May 31, 2007 9:26 AM ET
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