IFRS and (un)fair value

Ever since the dialouge started in india on IFRS and the debate to converge was on, my recommendation is to allow it as an "analyst" tool and nothing more. Accounting is to follow the historical concept with asset writedown as and when the same is impacted in the opinion of the auditor/ management by a permanent event which has reduced its value.
The fair value concept allows more "ad hoc" methods to be adopted as there are multifarious methods of valuing various assets. It is heartening to know that the very advocates of "fair value" are now calling for a review of this concept as the current "credit crunch" forces banks and financial institutions to "write down" their assets as there is no liquidity for these investments and hence rather difficult to ascertain their fair value!!
The other major issue is that of ESOPS being charged to revenue - this is basically a revenue neutral transaction as far as the company is concerned and it only impacts the shareholders - so other than creating secret reserves and artificially reducing the profits in the books of companies this hasnt really helped.