FASB Loosens Mark-to-Market Rules. Finally

“The FASB today made some difficult decisions on challenging issues related to fair value accounting in an economic climate unlike any other in memory for most Americans," Barry Melancon, AICPA CEO and President said. "Now all participants in the financial reporting system have an obligation to move forward and provide the most transparent and reliable information on hard-to-value assets so that our capital markets can use that information to allocate capital efficiently,” Melancon said.

“Likewise, we encourage all participants in the financial reporting system, including regulators, to exhibit a strong spirit of cooperation as financial statement preparers and auditors use reasonable, good-faith judgment when valuing and auditing financial assets in illiquid markets,” Melancon said.

“Independent, private-sector standard setting of accounting is critical to a free-market economy and everyone involved in the financial reporting system should be committed to that principle. We unequivocally support FASB’s continuing independence,” Melancon emphasized.

“We understand that not all stakeholders will be happy with the outcome. AICPA committees have expressed their reasonable and well thought-out views on both sides of this proposal by FASB,” he said.

More information is available at http://www.aicpa.org/MediaCenter/

Bill Roberts of DC 12:50PM April 03, 2009