The U.S. Securities and Exchange Commission announced the steps that it has undertaken so far to conduct a study on “mark-to-market” accounting, which is required as part of the bailout package that was passed this past Friday.
The SEC is required to conduct a study by Jan. 2, 2009, in consultation with the secretary of the Treasury and the Board of Governors of the Federal Reserve System, under the legislation enacted last week to help stabilize financial markets.
Under the terms of the law, the study will focus on: the effects of such accounting standards on a financial institution’s balance sheet; the impact on bank failures in 2008; the impact on the quality of financial information available to investors; the process used by the Financial Accounting Standards Board in developing accounting standards; and whether it make sense to modify these standards.
SEC chairman Christopher Cox announced that James Kroeker, deputy chief accountant for accounting at the SEC, will serve as staff director for the study.
The SEC also announced that it is scheduling public roundtables to obtain input into the study from investors, accountants, standard setters, business leaders, and other interested parties.
SEC announces terms of “mark-to-market” accounting study
The report will look at accounting standards and the impact of bank failures, among other things
- By: James Langton
- October 7, 2008 October 7, 2008
- 16:44