The Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) have issued a statement regarding updating the rules on fair-value accounting.
The current environment has made questions surrounding the determination of fair-value particularly challenging for preparers, auditors and users of financial information, the SEC and FASB state.
There are a number of practice issues where there is a need for immediate additional guidance. To provide additional guidance on issues surrounding fair-value measurements, the FASB is preparing to propose additional interpretative guidance on fair value measurement under U.S. Generally Accepted Accounting Principles later this week.
While the FASB is preparing to provide additional interpretative guidance, SEC staff and FASB staff are seeking to assist preparers and auditors by providing immediate clarifications. The clarifications SEC staff and FASB staff are jointly providing based on the fair-value measurement guidance in FASB Statement No. 157, Fair Value Measurements (Statement 157), are intended to help preparers, auditors and investors address fair-value measurement questions that have been cited as most urgent in the current environment.
Following the announcement, the SEC and FASB were praised by the Mortgage Bankers Association for their efforts.
Souce: SEC