By Edith Orenstein, FEI Financial Reporting Blog - This evening, FASB released final FSP FAS 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active.” This FSP was issued in record time, as part of the response of standard-setters to provide guidance for applying the fair value accounting rules in inactive markets, as experienced during the recent market turmoil. For further background on this FSP, see our summary of the discussion at today's FAB board meeting, at which FASB voted to release the final FSP, here; see also our post from earlier today noting highlights from some of the 100 comment letters sent to FASB on the proposed FSP, including the comment letter sent by FEI's Committee on Corporate Reporting (CCR).
Separately, the Group of Seven Finance Ministers (G7) issued a statement today, entitled, “G7 Plan of Action” in which the last of five items on the list references accounting. That item states: “Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary.”
In related news, see announcement released by the IASB today, “[IASCF] Trustees Support IASB’s accelerated steps on the credit crisis."