Le Magazine du Trésorier - n°56 - 4ème trimestre 2006 - (Page 15)

DOSSIER Do we have to then resort to the proper method of historical cost? Obviously not! This would be the same as going backwards in accounting. Few people would defend the idea of going back to the past and resorting to a method that was labelled unfair and obsolete because it did little or nothing to reflect the economic reality. The IASB should ideally promulgate and promote practical methods that are solid, transparent and objective, which could be properly used to support investors making future predictions. The IASB could also distinguish the primary and quite certain valuation methods to be integrated into the annual financial statements (balance sheet and P&L sheets) and the secondary valuation methods that are less precise, exact or ‘fair’ to be incorporated in the annexes of the annual financial statements. This secondary information will be additional and complement the first. Following what IFRS 7 will impose, we could imagine using these accessory valuations in sensitivity analyses. The IASB has opted for the periodical revaluation of assets and liabilities at fair value. Some say this approach implies a volatility of results. Therefore it is logical that the investors should be informed of the figures reported and their nature. We must therefore distinguish the results achieved or not, the losses and gains resulting from the evolution of a real market price from those resulting from calculations based on simple hypotheses. THE BEST IS THE GOOD’S ENEMY Like in many other sectors, the best is often the good’s enemy in accounting. By having placed overly exaggerated emphasis on what the IASB believes is useful and necessary information, it has forgotten to pay enough attention to the reliability of the information to be delivered. Is this information still understandable? Is it interesting for the reader of an annual report? We must seriously ask ourselves this. Moreover, if the convergence between US GAAP and IAS/IFRS has been defended and maintained by the company treasurers and the EACT (*) with regard to the IAS 39 standard, they nevertheless believe that everything that comes from the United Stated must not necessarily be adopted as is. The ‘made in US GAAP’ is far from being a sufficient label to be incorporated as is ! In conclusion, before adoption we must make sure that such a complex and partially subjective notion, with all its advantages and disadvantages, does not mislead the so-called ‘users’ or investors as to the true nature of the economic reality of the underlying element. It is not clear whether the IASB has the will or the intention of making sure of this fact prior to generally adopting the notion of fair value. F. Masquelier Honorary Chairman of European Association of Corporate Treasurers Member of Financial Instrument Working Group (FIWG) Le Magazine du Trésorier - N° 56

Table des matières de la publication Le Magazine du Trésorier - n°56 - 4ème trimestre 2006

Sommaire
Editorial
La page des marchés
La parole à... M. Mauro Mazza, Gold Rush
DOSSIER : le contrôle des performances de trésorerie
La parole aux annonceurs
Vie de l'association
EACT
Brèves
Internet

Le Magazine du Trésorier - n°56 - 4ème trimestre 2006