FASB Head: Mark-To-Market Relaxation Within Three Weeks
Chicago Daily Observer
13 March 2009
5 Comments
After 6 months of mind numbing minutiae at the Chicago Daily Observer, the FASB might be on to something…
The head of the Financial Accounting Standards Board (FASB) — which, along with the SEC, oversees corporate accounting — told a House panel today that “in three weeks” his organization will issue new guidance on mark-to-market rules, allowing financial firms some flexibility in accounting for the toxic assets poisoning their balance sheets, the Associated Press is reporting.
I find it odd the attacks on the private, professional FASB, which advocates transparency and disclosure, and silence toward government regulators who impose inflexible capital requirements on the market.
I thought there were conservatives here.
I guess I was wrong.
WC,
I don’t think our record here is against transparency and disclosure…go ahead and tell people that the market values these securities at a ridiculous low value. Just don’t shut down health businesses to satisfy the reuglators. Washington Mutual and Merrill Lynch were cash flow positive companies, killed by silly regulations that had very little bearing on the financial health of the company.
If we are to be crushed by regulators, don’t we have some obilgation to reduce the force of the crushers?
JBP
John,
Very good, then, we are in agreement!
The real problem is with the regulators, not with the FASB, and, in fact, not with mark-to-market accounting. Even under the mark-to-market rules, there\’s nothing to stop a company from disclosing the historical values in the notes to the financial statements. (In fact, it should be encouraged!) The regulators should thus be the ones to whom you aim your arrows, not the (easier targets?) at the FASB.
The fault, dear John, lies not in the accountants but in regulators.
\"The fault, dear John, lies not in the accountants but in regulators.\"
(My apologies to The Bard.)
The financial accounting standard board(FASB)this is the inflexible capital requirment on the market.and this is market rule are best.
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