The Globe and Mail reports in its Saturday edition that Fairfax Financial Holdings has defended its valuation methods and accounting rules application against recent allegations by short-seller Muddy Waters Research. The Globe's David Milstead and James Bradshaw write that chief executive officer Prem Watsa refuted Muddy Waters's claims as "false" and "ill-informed." He said, "We have built our company over 38 years on honesty and integrity, full and complete disclosure in our reports to our shareholders." Mr. Watsa also said "the market has already spoken," as Fairfax's share price had recovered from its 12-per-cent plunge after the short-seller report was released last week. Mr. Watsa and chief financial officer Jennifer Allen have stated that Fairfax conducts quarterly checks to assess impairments of its investments. Ms. Allen described this as a "robust process" that involves evaluating cash flow projections from Fairfax's operating companies using various models. Fairfax also cross-references these projections with market prices and sales of other companies to ensure accuracy. Muddy Waters claims Fairfax has overstated its balance sheet by $4.5-billion (U.S.) because of accounting choices or transactions.