Bachus Calls For Hearings On MTM; Asks SEC Study FAS 5 Changes
By Edith Orenstein, FEI Financial Reporting Blog - On Oct. 2, 2008, Rep. Spencer Bachus, ranking member on the House Financial Services Committee, sent a letter to Rep Barney Frank, chair of that committee, asking that hearings be convened on ‘mark-to-market’ (MTM, also called 'fair value') accounting.
In related news, Robert Denham, chair of the Financial Accounting Foundation which oversees FASB, sent a letter to Rep. Frank on Oct. 2, saying, “We are very concerned about the current efforts of some to legislate the suspension of one of the FASB’s Standards, Statement 157 on fair value measurements," adding, “Any changes to accounting standards, including Statement 157, should be made through the FASB’s open due process, without political interference that could cause a loss of investor confidence in the financial reporting process.”
Separately, Bachus sent a letter to SEC Chairman Christopher Cox asking the SEC to study FASB’s proposed changes to contingency disclosures under FAS 5.
Read further details on the above items here.