Tuesday, March 17, 2009

FASB Releases Proposed FSPs on Fair Value, OTTI

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:

FASB News Release

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)

The FSPs were approved for release at FASB's March 16 board meeting, with a comment deadline of April 1, so that the board can meet on April 2 to finalize the FSPs. The commitment to issue guidance by April 2 was made by FASB Chairman Robert Herz and U.S. Securities and Exchange Commission Acting Chief Accountant Jim Kroeker at a Congressional hearing on March 12. The April 2 deadline coincides with the start of the G-20 meeting.

At the conclusion of FASB's March 16 board meeting, FASB Chairman Robert Herz said “[We should] encourage people to write in, and staff should be reaching out.”

Print this post

No comments: