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.”
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