FASB Releases Proposed FSPs On Fair Value, OTTI; Comments Due April 1
March 17, 2009
On March 17, 2009 the Financial Accounting Standards Board released two proposed FASB Staff Positions (FSPs) to provide guidance on fair value in inactive markets and other-then-temporary impairment (OTTI), respectively. The following documents were posted on FASB's website Tuesday night, March 17:
The FSPs were approved for release at FASB's March 16 board meeting, with a comment deadline of April 1, so that the board can meet on April 2 to finalize the FSPs. The commitment to issue guidance by April 2 was made by FASB Chairman Robert Herz and U.S. Securities and Exchange Commission Acting Chief Accountant Jim Kroeker at a Congressional hearing on March 12 (see related FEI summary.) The April 2 deadline coincides with the start of the G-20 meeting.
At the conclusion of the board meeting, FASB Chairman Robert Herz said “[We should] encourage people to write in, and staff should be reaching out” for additional feedback.”
Further details on the two FSP’s can be found in FASB’s Summary of Board Decisions, FASB’s board handout and these FEI summaries:
FASB Votes To Propose Additional Guidance on Fair Value In Inactive Markets, Distressed Transactions,
FASB Votes To Propose Additional Guidance on Other-Than-Temporary-Impairment (OTTI).
Updated March 17, 2009 by Edith Orenstein, Director, Accounting Policy Analysis, Financial Executives International (FEI). This summary does not represent FEI opinion unless specifically noted above.