I recently interviewed two users of financial reporting -Vinny Catalano and Randy Schostag - on the topic of fair value (mark-to-market) accounting. Both support some modification of FAS 157, Fair Value Measurement. The interviews were conducted on February 12, 2009. Read more in User Views on Fair Value: Vinny Catalano, CFA, Randy Schostag, CFA.
Also, on the subject of user views on fair value, a joint comment letter was filed on February 13 by the Center for Audit Quality, CFA Institute, Council of Institutional Investors and Consumer Federation of America, cautioning against a retreat from fair value accounting. (I'll call this group the Four C's; as I noted in a post last summer if they add three more like-named groups, they'd be the Seven C's- apropos in this age of discussions about liquidity.) Here are links to the Four C's Feb. 13 letter to Treasury Secretary Geithner, Federal Reserve Board Chairman Bernanke, and SEC Chairman Schapiro, and the Four C's Feb. 13 letter to the Chairs and Ranking Members of the Senate Banking Committee and the House Financial Services Committee (Dodd, Shelby, Frank and Bachus, respectively).
More articles on this subject
Additional articles of interest on this topic include articles by FEI and IMA member Al King, published in FEI’s Financial Executive Magazine (Dec. 2008 Financial Reporting column, see “GAAP vs. IFRS: Will the Real Fair Value Please Stand Up,”) and King's article in the January 2008 issue of IMA’s Strategic Finance Magazine, “Determining Fair Value.”
Also of interest is David Reilly's Commentary published in Bloomberg News on Feb. 19: "Clickable text link to YahooSexing Up the Books Isn't the Answer for Banking Woes."
Another view is taken by Brian Wesbury, Chief Economist of First Trust Portfolios L.P., published in the National Review online Feb. 16 entitled, “Untouchable Accounting Rules? Really?”
See links to more articles and related commentary here.