Nothing wrong with Noble’s disputed accounting policies, says PwC

Its mark-to-market framework is in line with rules.

PwC today said that Noble Group’s contested mark-to-market (MTM) valuations and governance framework are in line with relevant requirements of the International Financial Reporting Standards 3 (IFRS3) and standard industry practices.

This comes after Noble commissioned a third-party assurance review of its MTM models, which has come under fire from short-sellers and industry watchers.

PwC’s report said that Noble’s approach is “more sophisticated” compared to many non-financial companies.
“The individual valuations and overall valuation of the contracts included in the Group's consolidated balance sheet as at June 30th 2015 comply, in all material aspects, with...the relevant requirements of IFRS13 as well as standard industry practices,” PwC said. 

PwC’s report also highlighted certain recommendations to strengthen Noble's fair value policies and procedures, although none of these have affected the overall opinion.

Noble Group said that it will begin implementing these recommendations immediately to ensure the company remains a leader in its industry with regard to MTM valuations.