FASB may expand the use of fair-market values on income statements and balance sheets

[icm63]

Re: FASB may expand the use of fair-market values on income statements and balance sheets

goadam1, always have, just the timing of events I dispute.

[Slimprofits]

Re: FASB may expand the use of fair-market values on income statements and balance sheets

Accounting rules became political a long time ago. What we have here is F.I.R.E. attempting to takeover completely.

The American Bankers Association, the Commercial Mortgage Securities Association, the Council of Federal Home Loan Banks, the Financial Services Roundtable, the National Multi Housing Council, the National Apartment Association, the National Association of Home Builders and the Real Estate Roundtable signed onto the letter.

In addition, this tells me almost I need to know about the proposed Systemic Risk Council and who would benefit the most from the creation of it.

[Slimprofits]

Re: FASB may expand the use of fair-market values on income statements and balance sheets

The amendment, sponsored by Reps. Ed Perlmutter (D., Colo.) and Frank Lucas (R., Okla.), comes after "mark-to-market" accounting rules drew fire last fall from critics who said they exacerbated the financial crisis.

And it's bi-partisan. Even better! What a country.

[WildspitzE]

Re: FASB may expand the use of fair-market values on income statements and balance sheets

Accounting rules became political a long time ago.

Since the inception of the "public" markets.

[Slimprofits]

Re: FASB may expand the use of fair-market values on income statements and balance sheets

FASB Chairman Defends Fair Value, Calls for Separation From Banking Regulation
http://www.journalofaccountancy.com/Web/20092403.htm

Addressing another criticism of fair-value accounting, Herz admitted that reporting fair values can have procyclical effects on behavior. But he contends that “timely recognition of problems at financial institutions can have countercyclical effects through lessening the impact of financial downturns by providing an early warning of developing problems.”

This year both FASB and the IASB, under pressure from political influences, have struggled to agree on changes to accounting for financial instruments, which involves the fair value applications that have been most widely criticized. Herz provided assurances that FASB and the IASB would continue to work together on these issues, while acknowledging that the two boards have recently had differences in approach and timing. “Next year, once we have received comments and other input on our proposal, we will redeliberate at public board meetings all the key issues identified including discussing them with the IASB and making changes as appropriate,” he said. “Only after having completed this very extensive and thorough public due process will we issue a final standard carefully considering effective dates and transition.”

On Monday, the AICPA’s Accounting Standards Executive Committee (AcSEC) issued a comment letter to FASB in which the committee indicated that it favors an approach that would measure “many but not all” financial instruments at fair value. The AcSEC letter cited a 30-year fixed rate mortgage loan held to maturity as an example of a financial instrument that should not be measured and recorded on the balance sheet at fair value.