Items Tagged with 'Fair value'

ARTICLES

  • More Glib Press on FASB

    If you read the headlines (and most people don’t bother to go much farther beyond the headline than the lead paragraph –- to our collective disgrace), you already think FASB eased the rules for measuring fair value on Thursday. You might believe that it has at last caved in to pressure from banks and Congress, and decided to allow “preparers” and their auditors to use judgment when valuing illiquid assets.
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  • Levitt: Proposed Accounting Changes Will 'Obscure' Impairments

    Former Securities and Exchange Commission chairman Arthur Levitt fired a strong volley Thursday morning against the so-called mark-to-market lobby in a Washington Post op-ed, saying that proposed changes to key accounting rules governing the valuation of distressed assets would "obscure" and potentially "bury" the full extent of impairments on bad loans and ill-advised investments made by banks and other financial institutions.
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  • FASB Acts!

    At last week’s House hearing on mark-to-market accounting, representatives from both sides of the aisle blamed accounting standards for skewering bank balance sheets and demanded, as Congressman Paul Kanjorski (D-PA) put it, that “the Financial Accounting Standards Board and the Securities and Exchange Commission to do the jobs they are required to do. Emergency situations require expeditious action, not academic treatises. They must act quickly.”
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  • OTTI Rules Tweaked or Sharpened?

    It appears a cranky FASB, responding to a flood of comments -- some ill-informed, a bunch form letters -- added a few teeth to what had been looking like a technical fix to other-than-temporary-impairment guidance for securitized assets. Last week the Financial Accounting Standards Board voted to issue FSP EITF 99-20-a, Amendments to the Impairment and Interest Income Measurement Guidance of EITF 99-20, but with additional language not included in the exposure draft.
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  • Sympathy for the Fair Value Devil?

    On Wednesday, the Financial Accounting Standards Board is expected to vote on a change to the rules governing guidance for certain beneficial interests in asset securitizations. FSP EITF 99-20-A would amend rules for “Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Assets” (issued as an Emerging Issues Task Force 99-20 guidance, effective after March 15, 2001).
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  • SEC: Mark-to-Market's Not the Problem

    The Securities and Exchange Commission, in a Congressionally-mandated and extremely long 211 page report released Tuesday, suggested that a controversial accounting standard has had little to do with the financial meltdown and does not need to be suspended. The debate over of the effect of FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements, which went into effect November 2007, has been one rarely afforded to any accounting standard.
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  • SEC, FASB Issue Fair Value Guidance

    Rarely have accounting standards generated so much attention as in the current financial crisis. The Securities and Exchange Commission and the Federal Accounting Standards Board, acting on growing pressure from banks and other sources, moved on Tuesday evening to provide guidance on the use of fair value accounting in inactive markets, just in time to ostensibly affect third quarter earnings.
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