SEC begins study of 'mark-to-market' accounting

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09 Oct 2008

The US Securities and Exchange Commission has announced details of its study on 'mark-to-market' (fair value) accounting by financial institutions, as required by Section 133 of the Emergency Economic Stabilization Act of 2008. The study is to be completed by 2 January 2009, in consultation with the Secretary of the Treasury and the Board of Governors of the Federal Reserve System.

The study will focus on:
  1. The effects of such accounting standards on a financial institution's balance sheet
  2. The impacts of such accounting on bank failures in 2008
  3. The impact of such standards on the quality of financial information available to investors
  4. The process used by the Financial Accounting Standards Board in developing accounting standards
  5. The advisability and feasibility of modifications to such standards
  6. Alternative accounting standards to those provided in [Financial Accounting Standards Board] Statement Number 157
James Kroeker, Deputy Chief Accountant at the SEC, will be staff director for the study. Before joining the SEC, Mr Kroeker was a partner at Deloitte and Touche, LLP. The SEC intends to schedule public roundtables to obtain input into the study from investors, accountants, standard setters, business leaders, and other interested parties. Click for SEC Press Release (PDF 26k).

 

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