UPDATE 2-IASB rejects EU calls for immediate changes

* Immediate response to impairment guidance unnecessary-IASB * Board sets 6-mth timetable for draft new fair value rule (Adds French quote)

By Huw Jones

BRUSSELS, April 24 (Reuters) - The International Accounting Standards Board (IASB) on Friday rejected EU calls for an immediate response to U.S. easing in fair value accounting rules.

IASB, which sets mandatory accounting rules used in the European Union, said its fair value guidance was already in line with changes announced this month by its U.S. counterpart, the Financial Accounting Standards Board (FASB).

"Therefore, a level playing field exists in this area," the IASB said in a statement following a two-day board meeting.

FASB issued two sets of new guidance, one of fair value measurement, the other on impairment of financial assets.

At a meeting in Prague this month, EU finance ministers called on the IASB to adopt more flexible guidelines on fair value in line with those just issued by FASB.

EU Internal Market Commissioner Charlie McCreevy told Reuters this week the bloc's member states were waiting for an immediate response to the calls they made in Prague. [ID:nLM678782]

Fair value measures assets on company balance sheets by their market worth. EU finance ministers fear that if the IASB makes no immediate changes, banks in the 27-country bloc would be at a disadvantage to their U.S. peers.

"This question of coherence between the accounting princples recommended by the FASB and the IASB is a real difficulty," French Economy Minister Christine Lagarde said at a press conference in Washington.

"It's a question of having a level playing field."

Meanwhile, the IASB also said there was a need to improve guidance on when an asset is deemed to be impaired and thus trigger a writedown, but that this would be done within a broader and urgent review of the its fair value standard.

An immediate response to FASB's new guidance on impaired assets was not necessary, the IASB said.

Banks have faced having to value some complex securitised products that have become untradeable, forcing them to make big writedowns, triggering the need to recapitalise at a tough time.

The IASB also said to ensure consistency between it and the FASB rules, it will include relevant parts of FASB's guidance in its consultation draft on fair value measurement to be published in May.

The IASB set a six-month timetable for drawing up a proposal to replace its fair-value rule, signalling it would not ditch the normal process to meet political demand.

"We have heard a clear and consistent message on financial instruments accounting -- fix this once, fix it comprehensively and fix it in an urgent and responsible manner," IASB Chairman David Tweedie said.

"The IASB is committed to do just that by developing proposals within six months for public comment," Tweedie said. (Reporting by Huw Jones; Additional reporting by Anna Willard in Washington; Editing by Dale Hudson, Andrew Macdonald, Richard Chang)