The SEC released preliminary details on its study on “mark-to-market” accounting, as authorized in October by section 133 of the Emergency Economic Stabilization Act of 2008 (EESA). The study is to be completed by Jan. 2 in consultation with the Treasury secretary and the Board of Governors of the Federal Reserve System. Under the terms of the EESA, the study will focus on:
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The effects of such accounting standards on a financial institution’s balance sheet.
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The impacts of such accounting on bank failures in 2008.
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The impact of such standards on the quality of financial information available to investors.
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The process used by FASB in developing accounting standards.
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The advisability and feasibility of modifications to such standards.
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Alternative accounting standards to those provided in FASB Statement no. 157, Fair Value Measurements.
For more information on the study, visit www.sec.gov/spotlight/fairvalue.htm.