The European Commission has decided not to make unilateral changes to the way that the fair-value rules in International Financial Reporting Standards are applied in Europe—an idea that would have undermined the authority of the International Accounting Standards Board.
Instead, the Commission will accept the fair-value changes that IASB has made already—changes that critics say are little more than a sop to the suffering financial services industry—and push for further reforms through IASB’s own standards revision processes, rather than circumventing them.
