UPDATE: On March 17,2009 the Financial Accounting Standards Board released two proposed FASB Staff Positions (FSPs) to provide guidance on fair value in inactive markets and other-then-temporary impairment (OTTI), respectively. The following documents were posted on FASB's website Tuesday night, March 17:
Proposed FASB Staff Position FAS 157-e, Determining Whether a Market Is Not Active and a Transaction Is Not Distressed(Comment Deadline: April 1, 2009)
Proposed FASB Staff Position FAS 115-a, FAS 124-a, and EITF 99-20-b, Recognition and Presentation of Other-Than-Temporary Impairments (Comment Deadline: April 1, 2009)
Following is our original blog post on March 16.
At its board meeting earlier today (March 16), the Financial Accounting Standards Board voted to propose two FASB Staff Positions (FSPs) to provide guidance on:
o fair value in inactive markets, and distressed transactions, and
o other-then-temporary impairment (OTTI)
As noted in FASB’s Summary of Board Decisions posted following today’s meeting, the board plans to issue the Proposed FSPs on March 17 for a 15-day comment period, ending April 1.
Also according to FASB’s Summary of Board Decisions, the board “expects to discuss the comments it receives at its meeting on April 2, 2009,” or, as stated more affirmatively in the board handout for today’s meeting – and consistent with FASB Chairman Robert Herz’ and SEC Acting Chief Accountant Jim Kroeker’s commitment made at last week’s House Financial Services Committee hearing, so that the Board can finalize the proposed FSP[s] at its Board meeting on April 2.”
At the conclusion of the board meeting, FASB Chairman Robert Herz said “[We] encourage people to write in, and staff should be talking to [constituents]… reaching out.”
Read highlights of the board’s discussion today in these FEI summaries: