Expert advice on investment May 9, 2009
In 2004, the US Financial Accounting Standards Board adopted SFAS 123R, which requires employee stock options be valued on the date they were allocated and expensed over the vesting period of options. A year later, there were data patterns that suggested some stock options were backdated to give the most benefit to employees receiving the options. (The Star Online, Malaysia -- Business)
Netflix: Unstreamed Assets May 9, 2009
Using an from the Financial Accounting Standards Board that applies to broadcasters, Netflix said it had $94. 5 million of content commitments as of March 31 that did not meet the technical definition of a ;current asset; based on the estimated time of usage after initial availability. (Multichannel News)
EPCOR Announces Quarterly Results May 8, 2009
As permitted by Canadian GAAP, the Company is applying the U.S. Financial Accounting Standards Board (FASB) standard, Statement of Financial Accounting Standards No. 71 - Accounting for the Effects of Certain Types of Regulation (SFAS 71), which provides guidance for the recognition and measurement of rate-regulated assets and liabilities. These amendments and adoption of the SFAS 71 guidance effective January 1, 2009, did not have a material impact on our interim consolidated financial... (Canada Newswire)
MI Developments announces 2009 first quarter results May 8, 2009
Business Combinations In December 2007, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 141(R), "Applying the Acquisition Method" ("SFAS 141(R)"), which modifies the accounting for business combinations occurring in fiscal years commencing after December 15, 2008 ... - In order to accrue for a restructuring plan in purchase accounting, the requirements in FASB Statement of Financial Accounting Standards No. 146, "Accounting for Costs... (Canada Newswire)
Bridging the GAAP: FASB chairman digests possible changes to accounting rules May 8, 2009
for free extra services. Subscribe to The Business Journal. (Business Journal of the Greater Triad Area)
FASB head urges decision on IFRS May 7, 2009
Convergence between the US GAAP system and International Financial Reporting Standards could take three to five years, said Robert Herz, chairman of the Financial Accounting Standards Board (FASB) ... He added that while the FASB is working with international lawmakers in London to continue convergence, any timetable would rely on receiving more public support: "I think the SEC needs to do a very thorough study from a public policy point of view of the impacts on our financial system and our... (Accounting Web, UK)
The Ensign Group Reports First Quarter 2009 Earnings of $0.38 per Share; Reaffirms 2009 Guidance May 7, 2009
39 ===== === ===== Weighted average common shares outstanding: Basic 20,572 20,572 ====== === ====== Diluted 20,892 20,892 ====== === ====== (1) Represents acquisition related costs expensed during the first quarter under Statement of Financial Accounting Standards (SFAS) No. 141(R), Business Combinations, which were previously capitalizable under SFAS 141. (2) Represents amortization costs incurred during the first quarter of fiscal year 2009 related to acquired patient base intangible assets. (PR Newswire)
American Capital Announces Q1 2009 Earnings May 6, 2009
"We experienced approximately $150 million of the depreciation due to widening investment spreads and approximately $450 million due to a decline in portfolio performance and credit impairment. While it is too early to call a bottom to the recession and asset depreciation, we are cautiously optimistic based on recent economic data showing that the rate of economic decline has significantly slowed. Additionally, while we are not pleased with the amount of depreciation on our portfolio in the... (PR Newswire)
Hill International Reports First Quarter 2009 Financial Results May 6, 2009
17 ============ ============ Diluted weighted average common shares outstanding 41,119 41,121 ============ ============ (1) Effective January 1, 2009, the Company adopted Statement of Financial Accounting Standards No. 160 ("SFAS No. 160") which requires the amount of consolidated net income attributable to the parent and noncontrolling interests (formerly minority interests) to be clearly identified and presented on the face of the consolidated income statement, with retroactive adoption of its... (Primezone Releases)
Aussie banks face profit hit next year May 5, 2009
A decision by the London-based IASB is likely to follow that of the US Financial Accounting Standards Board (FASB) and is expected from mid-2010, Angus Thomson, technical director of the Australian Accounting Standards Board (AASB) said. "If you had to guess at any change, it would probably bring provisioning forward in time," he said. (Sydney Morning Herald -- Business)
Trico Reports First Quarter Results and Favorable Outlook for Subsea Sector May 5, 2009
Three Months Ended -------------------- March 31, Dec. 31, 2009 2008 --------- --------- (In thousands) Adjusted EBITDA $ 2,476 $ 30,259 Impairments -- (172,840)(1) Amortization of non-cash deferred revenues 140 69 Gain (loss) on sale of assets 9 (61) Stock-based compensation (724) (715) Depreciation and amortization (18,072) (20,104) --------- --------- Operating loss $ (16,171) $(163,392) ========= ========= (1) Includes impairment of goodwill and tradenames based on the Company's annual... (Primezone Releases)
Republic Services, Inc. Reports First Quarter Earnings Per Share of $.30 May 1, 2009
changes by the Financial Accounting Standards Board or other accounting regulatory bodies to generally accepted accounting principles or policies. acts of war, riots or terrorism, including the events taking place in the Middle East, the current military action in Iraq and the continuing war on terrorism, as well as actions taken or to be taken by the United States or other governments as a result of further acts or threats of terrorism, and the impact of these acts on economic, financial and... (PR Newswire)
Schedule of Upcoming Luncheons at the National Press Club May 1, 2009
Text hiding to spacing. NATIONAL PRESS CLUB LOGO. (PRNewsFoto/NATIONAL PRESS CLUB) WASHINGTON, DC UNITED STATES. (PR Newswire)
The Manitowoc Company Reports Financial Results for the First Quarter of 2009 May 1, 2009
The company recorded these charges in accordance with Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets," and the required analysis was performed with the assistance of a third-party valuation firm. These impairments are non-cash expenses that do not affect the company's debt position, cash flow, liquidity, or financial covenant ratios contained in our credit agreement. (PR Newswire)
Canada Revises Accounting Rules to Meet Global Standards, Narrow U.S. Gap May 1, 2009
The U.S. Financial Accounting Standards Board approved changes to fair-value, or mark-to-market accounting, on April 2, that eased rules to recognize fluctuations in the value of investments. Critics of the original accounting rule say it hurt banks by forcing them to book paper losses in the midst of a global economic crisis. (Bloomberg -- Canada)
Kaiser Aluminum Corporation Reports First Quarter 2009 Financial Results Apr 30, 2009
(3) The Company adopted Financial Accounting Standards Board Staff Position Emerging Issues Task Force 03-6-1, Determining Whether Instruments Granted in Share-based Payment Transactions are Participating Securities ("FSP EITF 03-6-1"), on January 1, 2009. All of the Company's unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) were treated as participating securities and were included in the computation of earnings... (Primezone Releases)
BioMed Realty Trust Reports First Quarter 2009 Operating and Financial Results Apr 30, 2009
Financial information for the current and, where applicable, prior periods has been presented to reflect the application of the following new accounting guidance adopted by the company effective January 1, 2009: FASB Staff Position APB 14-1 "Accounting for Convertible Debt That May be Settled Upon Conversion (Including Partial Cash Settlement)"; Statement of Financial Accounting Standard No. 160 "Noncontrolling Interests in Consolidated Financial Statements - An Amendment of ARB No. 51"; and... (PR Newswire)
IFRS convergence on track in US Apr 30, 2009
The IASB and the US Financial Accounting Standards Board (FASB) have agreed to complete 11 major joint projects by 2011 to improve and converge major areas of accounting such as revenue recognition and pension accounting. In recent months the two bodies have mainly focused on mark-to-market accounting issues, but the project remains on track for a timely completion said IASB's Tom Jones. (Accounting Web, UK)
Mark-to-Market takes Precedence in ... Apr 30, 2009
The group was established by and receives staff support from the two global accounting standard setting authorities - the London-based International Accounting Standards Board (IASB) and US-based Financial Accounting Standards Board (FASB). The two boards have been for some years working on converging the US General Accepted Accounting Principles (GAAP) and International Finance Reporting Standards (IFRS). (Suite101.com)
US changes should not be adopted, says ICAS Apr 30, 2009
Financial Accounting Standards Board (FASB)recently amended the rules to allow companies listed on American exchanges greater scope to value certain financial assets based on their own models, rather than market prices. ICAS argues that the International Accounting Standards Boards' (IASB) existing guidance in this area is sufficient and any further changes will question the ability of the standard setter to withstand political pressure. (Accounting Web, UK)
NU Reports First Quarter Results Apr 30, 2009
0 million related to the adoption of Statement of Financial Accounting Standards No. 157, which affected the valuation of the competitive businesses' remaining wholesale power obligations that are marked to market. Parent and other companies. (PR Newswire)
Massey Energy Reports First Quarter 2009 Operating Results Apr 29, 2009
66 ====== ====== ====== Note 5: On January 1, 2009, the Company adopted Financial Accounting Standards Board ("FASB") Staff Position ("FSP") Accounting Principles Board ("APB") 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" (FSP APB 14-1") for the 3.25% Notes issued in August 2008. This FSP indicated that convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement,... (PR Newswire)
Massaging Bank NumbersA How-To Guide Apr 29, 2009
Scrap mark-to-market accounting: After locking horns with the banking industry for several months, the Financial Accounting Standards Board yielded and relaxed mark-to-market accounting, giving banks much more leeway when it comes to valuing their assets and lengthening the timeline by which banks are required to write down losses. Both Wells Fargo, which claimed a $3 billion profit in the first quarter, and Citigroup, which only lost 18 cents per share as opposed to the 34 cents per share... (Slate)
Albemarle Reports First Quarter 2009 Results Apr 28, 2009
(c) As adjusted due to the implementation of FASB Staff Position No. EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities," which was effective for financial statements issued for fiscal years beginning after December 15, 2008 and requires retrospective application. Basic and diluted earnings per share each decreased one cent as a result of an increase in our basic and diluted weighted-average common shares outstanding of... (PR Newswire)
Integra Bank Corporation First Quarter 2009 Earnings Release and Conference Call Scheduled Apr 28, 2009
Factors that might cause such a difference include, but are not limited to: (1) the adverse effects of the current recession in the markets in which Integra does business; (2) changes in the interest rate environment that reduce the net interest margin; (3) unanticipated additional charge-offs and loan loss provisions; (4) the ability of Integra to maintain required capital levels and adequate sources of funding and liquidity; (5) the impact of problems affecting issuers of investment securities... (Primezone Releases)
Transcript of a Press Conference on the Spring 2009 Global Financial Stability Report, IMF Apr 28, 2009
The question is: U.S. Congressman Kucinich and others have suggested that the recent spate of good news for major U.S. banks may be a result of the FASB ruling to change the mark-to-market rule. Can you comment on this. (IMF News)
The great crash of the "Chicago school" of economics Apr 28, 2009
That would include the weakening of mark-to-market accounting rules recently announced by the FASB, and would, on first glance, seem to offer the banks a way to whitewash potential liabilities. But later, the white paper states that the new FASB guidance was only incorporated for the baseline scenario ... "However, for the more adverse scenario, in order to reflect greater uncertainty about realizable losses in stressful conditions, supervisors did not incorporate the new FASB guidance.". (Salon)
Pandit's Not Out Of Woods Apr 18, 2009
5 billion gain from Financial Accounting Standards Board rules that were amended earlier this month, enabling banks to use "fair judgment" in assigning values to illiquid securities. Before the change, the securities had to be marked to market, which for securities that don't trade means sharp writedowns even when there is some value there. (New York Post -- Business)
Citigroup profits exceed estimates Apr 18, 2009
Citigroup already is benefiting from the Financial Accounting Standards Board's decision earlier this month to ease rules that forced banks to write down assets whose market value had been depressed so long their impairment was no longer considered temporary. Copyright 2009 Globe Newspaper Company. (Boston Globe)
Federal intervention justified in a global meltdown Apr 17, 2009
If this all wasn't bad enough, the Financial Accounting Standards Board created a new accounting rule called mark to market. That means when the CDOs dropped in value, the banks had to immediately write off the loss. (Greenville Delta Democrat Times, MS)
Wells Fargo's Profit Looks Too Good to Be True Apr 16, 2009
On Jan. 1, new rules by the Financial Accounting Standards Board took effect prohibiting such transfers. A Wells spokeswoman, Janis Smith, declined to comment. (Bloomberg -- Columnists)
Banks Balk at Selling Toxic Assets Apr 16, 2009
At that point, pressure mounted from regulators, the Federal Reserve and Congress on the Financial Accounting Standards Board to loosen accounting rules so that the toxic assets' book value could be marked up to buttress the banks' balance sheets conveniently raising the assets potential sales price at the same time. And in late March, days before the meeting with the bank CEOs, Geithner and Obama unveiled the government subsidies for buyers, drawing big names like Blackstone and Pimco into the... (Time.com)
TALF Needs Chaperon Before Investors Will Dance: Caroline Baum Apr 16, 2009
Kanjorski told Financial Accounting Standards Board Chairman that if regulators didnt ease mark-to-market accounting rules, then Congress will have no other option than to act itself. . (Bloomberg -- Columnists)
Crown Holdings Reports First Quarter 2009 Results Apr 16, 2009
Weighted average diluted common shares outstanding for 2008 have been retrospectively adjusted in compliance with FASB Staff Position (FSP) No. EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" and certain 2008 expenses have been reclassified for comparative purposes. Consolidated Supplemental Financial Data (Unaudited) (in millions) Reconciliation from Gross Profit to Segment Income The Company views segment income, as... (PR Newswire)
Wall Street in Wells Fargo Moment as Obama Stress Tests Earnings Euphoria Apr 14, 2009
One reason quarterly results may not be enough to win the confidence of investors is that the Financial Accounting Standards Board approved new rules earlier this month that make it harder to determine how much capital banks will need if the longest recession since the Great Depression deepens. The question is how regulators are going to deal with the kind of FASB-adjusted earnings that were going to see, which are going to look very rosy, but will of course be completely non-cash, said... (Bloomberg)
Letters to the Editor Apr 13, 2009
Your editorial criticizing a recent ruling by the Financial Accounting Standards Board ("A step toward more honest accounting," April 8) glossed over the devastating impact the mark-to-market accounting standard, which has only applied to banks since November 2007, has had on the financial services industry, and misrepresented the reasons for the banking industry's support of FASB's decision. Marking assets to market worked effectively over the years when a market existed to set valuations. (San Francisco Chronicle -- Opinion)
Banks and accounting standards: Messenger, shot Apr 11, 2009
On April 2nd, after a bruising encounter with Congress, America s Financial Accounting Standards Board (FASB) rushed through rule changes. These gave banks more freedom to use models to value illiquid assets and more flexibility in recognising losses on long-term assets in their income statements. (The Economist)
Buttonwood: Spin and substance Apr 9, 2009
Hard to square that, however, with the decision of America s Financial Accounting Standards Board, announced as the G20 met, to give banks more flexibility in valuing assets. If banks can choose between keeping the assets on their balance-sheets, at a value of their choosing, and selling them to governments, written down to a fair price, it is not difficult to imagine which they will pick. (The Economist)
SEC advances five options on short-selling rules Apr 9, 2009
The Financial Accounting Standards Board on April 2 gave companies more leeway in valuing assets and reporting losses, a move that sent financial stocks and the broader market soaring. Both sets of changes would especially benefit banks and other financial institutions, whose balance sheets have been battered in the financial crisis and whose stocks have been targeted by short sellers. (Globe and Mail -- Business)
Consumers Express Optimism Economy Has Begun To Turn Apr 9, 2009
Last week, the Financial Accounting Standards Board moved to ease mark-to-market accounting rules that have forced financial firms to book huge losses on bad debt. Giving financial firms more flexibility in valuing assets is expected to boost their earnings and help ease the recession, but some argue that it will only delay the pain. (Investors Business Daily)
Bankers get a model rush Apr 9, 2009
In 1973, the accounting industry's American Institute of Certified Public Accountants, recognizing the danger that accounting by standards of hopeful wishes might eventually pose to the image and credibility of the accounting profession, united two previously independent accounting self-regulatory bodies into the new Financial Accounting Standards Board (FASB). Following on that, the US Securities and Exchange Commission accepted FASB as the organization responsible for setting accepted... (Asia Times Online)
Canada Hasn't Made Decision on Mark-to-Market Accounting, Regulator Says Apr 8, 2009
The U.S. Financial Accounting Standards Board will allow companies to use significant judgment in valuing assets to reduce writedowns on certain investments, including mortgage- backed securities. Canadas six main banks have taken about C$19. (Bloomberg -- Canada)
South Africa: Accounting 'Not to Blame' for Crisis Apr 8, 2009
Tweedie said that the international accounting board and its US counterpart, the Financial Accounting Standards Board, had agreed to issue proposals to replace accounting standards for financial instruments with a common one this year, rather than the several years it was expected to take. "However, this was not an easy task as there were areas where the boards might find it difficult to reconcile differences in the existing standards.". (allAfrica.com)
Banks press accounting body to adopt U.S. rules Apr 8, 2009
Last week's changes by the U.S. Financial Accounting Standards Board (FASB) would conflict with those international standards, he said. That's the quandary the board is in. (Globe and Mail)
On Financial Reporting Rules A step toward honest accounting Apr 8, 2009
Succumbing to political pressure, the Financial Accounting Standards Board (FASB) agreed to water down an important rule known as "mark-to-market" accounting ... On Financial Reporting Rules / A step toward honest accounting Articles Succumbing to political pressure, the Financial Accounting Standards Board (FASB) agreed to water down an important rule known as "mark-to-market" accounting. (San Francisco Chronicle -- Opinion)
Foolishness not limited to April 1 Apr 8, 2009
On Thursday, responding to the demands of vociferous members of Congress, the Financial Accounting Standards Board changed rules to now allow banks to value toxic and other assets on their books as they wish, no longer according to "mark to market," what the market value of those assets actually is. Let's assume that Bank X has on its books a bunch of subprime-mortgage loans that are basically worth nothing. (Pittsburgh Post-Gazette, PA)
Easing A/Cting rules is not the answer Apr 7, 2009
Last Thursday under pressure from the US Congress, the US Financial Accounting Standards Board voted to modify the mark-to-market accounting standard to allow banks to hold toxic assets on their books without marking them down to currently depressed market prices. But this heads-I-win-tails-you-lose philosophy will do neither corporates nor the economy any good. (India Times)
Too much data, not enough information says ICAS Apr 7, 2009
The accounting body put forward this view in a submission to the Financial Crisis Advisory Group recently, a panel set up by the International Accounting Standards Board and its US counterpart, the Financial Accounting Standards Board to consider the standard setting implications of the global financial crisis. ICAS strongly believes that accounting has not caused the economic crisis and should not become a scapegoat for failures in decision-making, said Hugh Shields, chief economic adviser at... (Accounting Web, UK)
MARK TO MAYHEM Apr 6, 2009
Pitt and others reacted after the Financial Accounting Standards Board (FASB) voted to exclude banks from having to mark the value of their assets to market prices. The so-called "mark-to-market" rule allows banks to keep their toxic mortgage assets at robust prices, alleviating their need to raise more capital. (New York Post -- Business)
ECB Considers Use of New Tools to Bolster Economy as Finance Chiefs Bicker Apr 6, 2009
The International Accounting Standards Board, which writes the rules used in Europe, must cooperate with the U.S. Financial Accounting Standards Board, the ministers said in a statement on April 4. A goal is to avoid competitive distortions, they said. (Bloomberg -- Europe)
EU finance chiefs battle to overhaul bank rules Apr 6, 2009
Under pressure from Congress, the US Financial Accounting Standards Board voted on Thursday to modify the mark-to-market accounting standard, which has been blamed by some for worsening the global financial crisis. The changes allow banks to hold some toxic assets, to give them more time to recover where financial markets are frozen, rather than regularly marking their prices down to depressed market prices. (Business Report, South Africa)
Banks Get New Leeway in Valuing Assets Apr 4, 2009
REALTOR Magazine Online: The real estate professional's business support tool. YOUR INTERACTIVE MAGAZINE REALTOR.ORG/realtormag. (Realtor Magazine Online)
Global markets hand back G20 gains Apr 4, 2009
Risky assets also found support after the US Financial Accounting Standards Board promised more flexibility in valuing toxic assets in a move that boost bank earnings and improve their capital levels. "For now, stocks are giving the FASB fix the thumbs up... The profits of US banks and brokers for the first quarter will get an artificial boost. But not the profits of banks anywhere else in the world. This is certainly another victory for the obfuscators," Societe Generale said in a note to... (Business Report, South Africa)
The $700 billion bailout inside story Apr 4, 2009
"Lest anyone forget, the Great Depression still had quite a long way to go after 1933. By most historical reckoning, it didn't truly end until the onset of World War II.So ... cheer up! We might be only eight years and another globally horrific armed conflict away from a real recovery! Andrew Leonard Thursday, April 2, 2009 11:40 PDT Just how stressful are the stress tests that are supposed to tell us whether American financial institutions are healthy enough to survive the remainder of the... (Salon)
* Financial stocks rally as accounting rules are relaxed Apr 4, 2009
The Financial Accounting Standards Board said on Thursday it changed its guidelines for so-called mark-to-market accounting. The new guidelines will require companies to value assets at prices based on what they would be sold for in an orderly sale as opposed to a distressed sale. (Taipei Times, Taiwan -- Sports)
Mark-to-market accounting rule loosened Apr 4, 2009
After months of discussions, Congressional pressure, and an SEC investigation that concluded mark-to-market assessments didn t cause the financial meltdown, FASB nevertheless voted yesterday to allow companies more discretion in how they account for distressed assets ... But FASB s announcement should make it easier for companies, such as those with a portfolio of start-up ventures, to give a more long-range perspective to the value of their assets. (Pittsburgh Business Times, PA)
U.S. bank woes just the start, Whitney says Apr 4, 2009
The Financial Accounting Standards Board, which determines what rules U.S. companies must follow when adding up their numbers, has relaxed requirements that forced financial institutions to account for massive paper losses stemming from possibly temporary damage to assets caused by the credit meltdown. Critics say the easing of mark-to-market rules allows the banks to play fast and loose once again with asset values. (Globe and Mail -- Business)
Taxpayers' money for toxic assets? Apr 4, 2009
A rule adopted on Thursday by the Financial Accounting Standards Board to give banks greater freedom to value securities as they would in a normal market rather than at distressed or fire-sale prices, could complicate matters. The problem: it could actually reduce the amount of assets that are sold, while failing to reduce toxic assets overall. (India Times)
United G20 Inspires Asia Stocks Apr 3, 2009
Risky assets also found support after the U.S. Financial Accounting Standards Board promised more flexibility in valuing toxic assets in a move that boost bank earnings and improve their capital levels. "For now, stocks are giving the FASB fix the thumbs up... The profits of U.S. banks and brokers for the first quarter will get an artificial boost. But not the profits of banks anywhere else in the world. This is certainly another victory for the obfuscators," Societe Generale said in a note to... (ABC News -- Wire)
U.S. Rulemaker Eases Mark-to-Market's Bite Apr 3, 2009
The five-member Financial Accounting Standards Board voted unanimously to let banks exercise more judgment in using mark-to-market accounting that has forced billions of dollars in writedowns and been blamed for worsening the recession. But the board split 3-2 on backing guidance that would let lenders take smaller losses on impaired assets such as mortgage backed securities, a move critics said would let banks hide reality from investors. (ABC News -- Wire)
Toxic Books Trick Apr 3, 2009
The Financial Accounting Standards Board voted to relax rules on how Wall Street prices the investments that been plaguing their earnings, such as illiquid mortgage securities, giving the banks greater discretion in putting a price on assets that have led to billions in writedowns and have forced some companies to the brink of collapse. Now, instead of pricing assets at the level they would go for if sold immediately, a process known as mark-to-market accounting, banks can now rely more on their... (New York Post -- Business)
Dow closes up 214 points Apr 3, 2009
Bank stocks got an especially big boost when the Financial Accounting Standards Board relaxed rules forcing banks to value their assets at current prices. The change should help banks reduce losses. (Crain's Chicago Business)
Do you remember the great oil shock of 2008? Apr 3, 2009
Giving into intense political pressure, the Financial Accounting Standards Board announced on Thursday that The bottom line: Financial institutions will now have more leeway to decide on their own how bad their toxic assets really smell. I first ranted on the folly of this ultimate paper-over-your-problems accounting strategy and then moderated my views slightly There is a legitimate issue here: When markets in a given asset are not trading actively, but a financial institution is forced to sell... (Salon)
Wall Street surges on accounting change, G20 Apr 3, 2009
5% after the Financial Accounting Standards Board voted to relax so-called fair-value rules. Benchmark indexes jumped even as new claims for unemployment insurance benefits swelled to a 26-year high. (Sydney Morning Herald -- Business)
Mark-to-market accounting changes 'long overdue' Apr 3, 2009
The Financial Accounting Standards Board, pressured by US lawmakers and financial companies, has voted to relax fair-value accounting rules that Citigroup and Wells Fargo say don't work when markets are inactive. Changes to fair-value, or mark-to-market accounting, approved by FASB yesterday allow companies to use significant judgment in gauging prices of some investments on their books, including mortgage-backed securities. (Sydney Morning Herald -- Business)
