GLG News Analyses of the following article:

The Fair Value Deadbeat Debate Returns

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Published at: www.cfo.com

Nitish GroverPrincipal, OwnerNitish Grover and Associates

Fair Value - The Continuing Debate - Why it Never Ends?

July 8, 2009

The referred article speaks of fair value and its impact on credit rating. Fair value is related to a number of  instruments including derivatives, hedging and plain vanilla instruments. I was recently at a conference in Agra, India where the Chairman of the IASB Sir David Tweedy mentioned IAS 39 in passing and said that the IASB was still trying to get to grips with its intricacies. In this analysis I look at why fair value will continue to confuse but is essentially the light in the right direction for understanding corporate financial reports.

Paul MillerProfessorTHE REGENTS OF THE UNIVERSITY OF COLORADO

Truth is truth, whether it's welcome news or not

July 7, 2009

Financial reporting works best, and maybe only, when it is complete and unbiased.  If it is biased to manage the message, it becomes a method of distributing propaganda and all credibility is lost.The economics of gain occurrence is unarguable.  If management can retire a debt for a smaller amount than the carrying value, then there are fewer liabilities and more equity.  More equity means income has occurred.  There is no rationality behind efforts to suppress truthful news just because you don't like it.  Let's all hope the standard setters are not swayed by "visceral" impulses into the direction of keeping useful information out of financial statements.  The inevitable consequence is greater risk and discounted share and bond prices, simply because users don't have access to the truth.  That does no one any good.