AN INDIAN finance professional has highlighted the importance of fair value accounting at times of financial crisis.
Ramesh Mahalingam was speaking at a seminar organised by the Doha chapter of the Institute of Chartered Accountants of India (ICAI).
Mahalingam is the chief finance and investment officer of Finance House, a UAE-registered financial institution headquartered in Abu Dhabi.
The deregulation in the US banking industry blew away the restrictions on banks, both on interest rates and nature of their business, he said.
He said the initiatives by standard-setting bodies such as the International Accounting Standards Board and Financial Accounting Standards Board in introducing fair value concepts in accounting and presentation of financial statements were steps in the right direction.
Fair value accounting, he said, was an attempt to overcome shortcomings of historical cost, giving its users a clearer picture of the companys economic state.
ICAI Doha chapter chairman Kurian Kuriakose introduced the speaker and later proposed a vote of thanks.