26 Chapter Street,
London,
SW1P 4NP
Tel:
020 7663 5441
Fax:
020 8849 2468
www.cimaglobal.com
Ms L Figgie
Senior Project Manager,
IASB,
30 Cannon St.,
London
EC4M 6XH
12 December 2008
Dear Ms Figgie
Improving Disclosures about Financial Instruments
The Chartered Institute of Management Accountants (CIMA) is pleased to have the opportunity to
comment on this consultation. CIMA is a global professional body representing accountants in
business. CIMA represents over 164,000 members and students in 161 countries. CIMA is
committed to high quality, global, principle-based, neutral financial reporting standards and supports
the widespread adoption of International Financial Reporting Standards.
The current market turmoil has led to calls to suspend ‘fair value’. CIMA disagrees with these calls;
although we do believe that a where there is an illiquid market fair values cannot always be
determined by reference to market prices. We favour the use of market values to determine fair value
when evidenced in deep and liquid markets, but when markets are distressed then a range of
information and valuation techniques should be explored, such as realistic and robust management
cash-flow projections
Particularly in these times, it is essential that corporate reports provide sufficient contextual information
on the values used to allow investors to fully understand the nature of the amounts reported. We
support the improved disclosure requirements proposed by this consultation and agree with each of
the questions raised.
We would be pleased to discuss with you any aspect of this letter that you may wish to raise with us.
Yours sincerely
Charles Batchelor
Nick Topazio
Charles Batchelor
Nick Topazio
Chairman of Financial Reporting Development Group
CIMA
London
Business & Financial Reporting Specialist,
Financial Reporting Development Group
CIMA
London
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