The International Accounting Standards Board on Tuesday proposed to simplify the fair value rule, which European Union members have blamed for contributing to the financial crisis.

IASB said in a statement that the proposals will "significantly reduce complexity and make it easier for investors to understand financial statements, address how financial instruments are classified and measured." The proposals will also address concerns such as eliminating the different impairment approaches for available-for-sale assets and assets measured using amortised cost.