Alert January 06, 2009

SEC Provides Congress with Report on Mark-to-Market Accounting Required by EESA

The SEC delivered a report to Congress mandated by the Emergency Economic Stabilization Act of 2008 that addresses specified issues with respect to the mark-to-market accounting standards in FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements.  The 211-page report (available on the SEC website) prepared by the SEC’s Office of the Chief Accountant and Division of Corporation Finance in consultation with the Treasury and FRB does not recommend suspending existing fair value standards, but instead urges changes aimed at improving existing practice.  The Report indicates that the SEC staff determined that investment companies are outside of the scope of the study and therefore generally did not address issues concerning investment companies.