Senate Passes Financial Rescue Bill, Goes to House Next; SEC, FASB Issue Guidance on Fair Value, More to Follow

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By Edith Orenstein, FEI Financial Reporting Blog -
Here's a roundup of the latest developments in the credit crisis and related accounting issues that have been mentioned. Following the stunning defeat of the House version of the financial markets rescue bill earlier this week, the Senate was able to pass a strengthened version of the bill, the Emergency Economic Stabilization Act of 2008. Today, the House is expected to vote on its own revised version of the bill, expected to encompass additions included in the Senate bill (e.g. an increase in the maximum level of FDIC insured deposits) and may incorporate other changes as well. Sections 132 and 133 of the Senate bill which would reiterate the SEC's authority to suspend mark-to-market (fair value) accounting and requiring SEC to publish a study of the impact of the mark-to-market accounting rules (FAS 157) within 90 days of enactment of the law, parallel those Sections of the House version of EESA which did not pass the House earlier this week. It will be interesting to see if Sections 132 and 133 remain unchanged in the current draft of the House bill. In related news, on Sept. 30, the SEC and FASB issued a joint clarificaiton of application of fair value accounting in inactive markets. And, on Oct. 1, FASB voted to propose additional guidance on this issue via a proposed FASB staff position, which is expected to be released today as Proposed FSP FAS 157-d. Detailed coverage in the FEI blog can be found at the links below.
SEC, FASB Issue Fair Value Guidance, More To Come
Senate Passes Financial Rescue Bill (EESA), Goes to House Next; FASB Takes Further Action

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