Final 'bailout bill' includes two fair value measurement sections
04 Oct 2008
Yesterday, by vote of 263-171, the United States House of Representatives approved the version of the so-called 'Financial Institutions Bailout Bill' (officially the Emergency Economic Stabilization Act of 2008) previously approved by the Senate.
President Bush signed it into law. The final bill included the following two sections relating to fair value measurement issues that were noted in our News Story of 29 September 2008:
- Sec. 132. Authority to suspend mark-to-market accounting
Restates the Securities and Exchange Commission's authority to suspend the application of Statement Number 157 of the Financial Accounting Standards Board if the SEC determines that it is in the public interest and protects investors. - Sec. 133. Study on mark-to-market accounting
Requires the SEC, in consultation with the Federal Reserve and the Treasury, to conduct a study on mark-to-market accounting standards as provided in FAS 157, including its effects on balance sheets, impact on the quality of financial information, and other matters, and to report to Congress within 90 days on its findings.
