SEC, FASB Issue Clarifications to Curb Fire Sale Asset Valuations
October 6, 2008
The Securities and Exchange Commission and the Financial Accounting Standards Board last week jointly issued guidance to curb accounting interpretations that result in marking mortgage-related assets to fire-sale prices. Guidance was provided at the request of lenders who were concerned about the devastating impact of FASB Statement No. 157, which requires that assets be valued at their current...