The accounting profession is looking to raise the bar again on valuations that underpin financial statement assertions with a proposed new framework for the valuation of financial instruments.
The American Institute of Certified Public Accountants is seeking comment on a new framework that would steer accountants and other finance professionals on valuing financial instruments and their underlying components. The framework is intended to bring some clarity, consistency, and transparency to valuations, especially for hard-to-value instruments like mortgage-backed securities, credit default swamps, complex bonds and other derivatives.
