Creative Accounting in SGP soon?

[TeeKee]

Singapore to change accounting rules - state TV
10.21.08

SINGAPORE, Oct 21 (Reuters) - Singapore is set to introduce changes to its accounting standards to allow firms to value assets based on historical prices, state broadcaster Channel NewsAsia said on its website on Tuesday.

The move, which follows new guidelines set by the International Accounting Standards Board last week, will likely take effect this week, the broadcaster said.

Under current accounting rules, banks and companies are required to 'mark-to-market' assets based on the price they would fetch if sold on an open market, forcing many to book losses to reflect the sharp falls in financial markets.

(Reporting by Kevin Lim; Editing by Jennifer Tan)

 

[helicopview]

there pp are now very chia lak. They have to cover their huge losses by selling many states assets to balance. They need to do it fast..before the disclosure

 

[DIVISION1]

The term should be reflective accounting rather than creative accounting. Company valuation should reflect their actual and realistic potential worth in times of global financial craze and uncertainty. You would not want a 100 billion dollar company in reality to be valued as 5 cents due to the current global financial mechanism failing, would you?