Monday, October 13, 2008

Amer. Bankers Ass'n Asks SEC To Override FASB's New Fair Value Guidance

Shortly after I posted “What's The Impact Of FASB's New Guidance On Fair Value?” I received a copy of a press release issued by the American Bankers Association (ABA) which said: “The American Bankers Association sent a letter today to SEC Chairman Cox requesting that among other things, the SEC override the Financial Accounting Standards Board Staff Position issued last week on how banks and their auditors are required to apply FASB Statement No. 157. The letter urges the SEC to address in a more meaningful way the problems of using fair value in dysfunctional markets. The letter also notes that yesterday 15 European countries moved to make the types of accounting changes ABA has been advocating, but that FASB on Friday, as a practical matter, failed to implement.” See ABA Letter to SEC.

Donna Fisher, ABA Senior Vice President, Tax and Accounting told us: “To my knowledge, this is the first time the American Bankers Association has made a request like this. We did not make this decision lightly.”

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