Immed. SEC Action Needed on FV, ABA Tells Treas.
By Edith Orenstein, FEI Financial Reporting Blog - In a letter sent yesterday by the American Bankers Association to U.S. Treasury Secretary Henry Paulson, (see ABA letter) ABA President Edward Yingling stated: “While the government makes billions of dollars available to increase capital, other policies simultaneously are needlessly, and wrongly, erasing billions of dollars of bank capital.”
Separately, in a letter filed with FASB yesterday by FEI’s Committee on Corporate Reporting (CCR) and the U.S. Chamber of Commerce Center for Capital Market Competitivenes (CCMC), the two groups asked FASB to further delay the application of FAS 157 to nonfinancial assets and liabilities, and urges the board to consider related implications in FAS 141R, Business Combinations. Additionally, the letter makes a formal request under FASB’s Rules of Procedure for FASB to reconsider some aspects of FAS 157 in light of information learned about application of the standard during the credit crisis.
Also yesterday, FASB and the IASB held the second in their series of three joint roundtables on accounting issues arising in the financial crisis. Among the primary questions raised to panelists were impairment triggers and fair value measurement.
Read more about these developments here.