Fair Value?

• I have always felt that the arguments for failing to carry assets at fair value are weak. (See "Fair-Value-Accounting : What's in Store?" June Update)
• The supposed inability to value liabilities on an appropriate basis and the reliance on the long-term nature of these liabilities to justify the ignorance of current market conditions have led to confusing balance sheets and increased the tendency to overlook very real short-term financial concerns.

The solution may not be easy, but one must be found .

• An appropriate solution should incorporate the following characteristics:  (p3)

--  Lee A . Zinzow

1992 08 - The Actuarial Update - 8p