Fair value accounting and the future of financial instruments

Patricia Jackson (Regulatory Policy Division of the Bank of England)
David Lodge (Regulatory Policy Division of the Bank of England)

Balance Sheet

ISSN: 0965-7967

Publication date: 1 October 2000

Abstract

Discusses the recently published draft standard from the Bank of England that covers most controversial banking regulatory areas. States that there may well be advantages in a fair value approach for banks but disclosure of fair values would probably be preferable. Looks at the S&L crisis in the USA and how legislation worked in its case. Elaborates on Denmark’s comprehensive fair value approach that suggests that adjustments in this system do increase earnings and value of capital volatility. Pinpoints bond market problems and liabilities valuation. Contends that there would be advantages in adopting disclosure of fair values.

Keywords

Citation

Jackson, P. and Lodge, D. (2000), "Fair value accounting and the future of financial instruments", Balance Sheet, Vol. 8 No. 5, pp. 10-13. https://doi.org/10.1108/EUM0000000005376

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Publisher

:

MCB UP Ltd

Copyright © 2000, MCB UP Limited

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