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:
- The effects of such accounting standards on a financial institution’s balance sheet.
- The impacts of such accounting on bank failures in 2008.
- The impact of such standards on the quality of financial information available to investors.
- The process used by FASB in developing accounting standards.
- The advisability and feasibility of modifications to such standards.
- 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.