What is a realistic timeframe for the implementation of fair value accounting or Solvency II?
Solvency II is the measure most certain to be implemented first. They’ve been working on this for years and issued the necessary directives at the EU level. I think you’re going to see that coming in fairly quickly – ‘fairly quickly’ being estimated as around 2012. Fair value for insurance accounting has actually been mentioned as a potential candidate for deferral because of the fallout from the credit markets. The questions of applying fair value to illiquid securities appear to be a higher priority than rapid implementation of an insurance standard. So it may actually be pushed out a couple of more years beyond 2012. What competitive advantages exist for adopting fair value in the early stages? I’m not sure there are any advantages to adopting IFRS early in the near term, unless you want to raise capital outside of the US in foreign markets. If you want to sell a block of business or do a transaction with a company that currently reports under IFRS, that company will want to know wh
Related Questions
- FASB has announced it will make changes to the fair value accounting standards in the next few weeks. Why didnt NCUA wait to see if those changes may have impacted the financial position of these corporate credit unions?
- How is fair value determined in a fresh start accounting valuation?
- What is the fair value method for accounting for investments?
