The ability – even the intention – of published financial reports to present a true and fair view is under attack more than ever before. As a result, accountants, auditors and their regulators seek every opportunity to report transparently every source of value and risk. While exotic new credit derivatives enjoy the full glare of standard-setting, financial guarantees receive relatively cursory and even contradictory attention, despite their growing significance and close affinity to other credit derivatives, notably credit default swaps (CDS). Fortunately, a mass of multidisciplinary thought is available which, duly co-ordinated and unified, will improve corporate value and stability and lead to truer and fairer corporate reporting.
