The clarification on fair-value accounting requirements that was issued in the U.S. this week is consistent with Canadian accounting standards, said Paul Cherry, the chairman of the Canadian Accounting Standards Board, in a statement issued on Thursday.

Cherry acknowledged the recent clarification made by staff of the U.S. Securities and Exchange Commission and the Financial Accounting Standards Board and provided an update on the issue as it relates to Canada in the statement.

The Canadian Accounting Standards Board has issued three staff commentaries in the past year to help companies apply fair-value accounting requirements when dealing with Canada’s own liquidity crunch. The commentaries offered guidance on reporting holdings of asset-backed commercial paper to investors.

Cherry said the board staff is considering expanding the commentary guidance to cover a wider range of investments.

He acknowledged that measuring fair value in turbulent times can be very difficult, but added that the huge swings in market prices reflect the reality of the marketplace. There is a growing realization that the accounting requirements are not to blame, Cherry said: “Fair value accounting tells investors and the public ‘the way it is’.”