Thirty-seven percent of U.S. CFOs and senior controllers believe that a balance sheet should display both the fair value (exit value) and amortized cost of assets, according to a new survey by Grant Thornton, consistent with a forthcoming proposal from the Financial Accounting Standards Board regarding the presentation of financial instruments.
Another 37 percent favored just amortized cost, with 26 percent favoring fair value only. However, only 5 percent of the 496 respondents indicated that the income statement should reflect the change in fair value. Sixty-six percent believe that the income statement is most useful when it reflects revenues when earned and the corresponding costs.
The data indicate that there is support for fair value accounting on the balance sheet, but not on the income statement, said Grant Thornton Professional Standards partner John Hepp in a statement. This echoes comment letters from constituents that have called on the FASB and the IASB to clarify how to present changes in fair value and the principles underlying other comprehensive income.
