Mark to market and fair value accounting : an examination / James W. Curtis, editor.

Format:

Book

Contributor:

Curtis, James W.

Series:

Business economics in a rapidly-changing world series.

Business economics in a rapidly-changing world series

Language:

English

Subjects (All):

Fair value--Accounting--Standards.

Fair value.

Physical Description:

1 online resource (261 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, Inc., 2009.

Language Note:

English

Summary:

Fair value accounting is a market-based accounting system for determining the value of assets and liabilities. This book consists of public domain documents which provide clear examples of fair value.

Contents:

Intro

MARK TO MARKET AND FAIRVALUE ACCOUNTING:AN EXAMINATION

CONTENTS

PREFACE

FAIR VALUE ACCOUNTING:CONTEXT AND CURRENT CONCERNS*

ABSTRACT

HISTORICAL COST ACCOUNTING VS.FAIR VALUEACCOUNTING

THE FINANCIAL ACCOUNTING STANDARDS BOARD

THE SARBANES-OXLEY ACT OF 2002,THE SEC, AND FASB

FAIR VALUE AND MARK- TO-MARKET ACCOUNTING,ANDSECURITIES THAT ARE DESIGNATED AS TRADEABLE,HELD-TOMATURITY, AND AVAILABLE FOR SALE

FINANCIAL ACCOUNTING STANDARD 157

BASIC DIVISIONS BETWEEN SUPPORTERSAND OPPONENTSOF FAIR VALUE ACCOUNTING

CONGRESSIONAL INTEREST

KEY ARGUMENTS AGAINST FAIR VALUE ACCOUNTING

KEY ARGUMENTS IN FAVOR OFFAIR VALUE ACCOUNTING

THE SEC EXAMINES THE IMPACT OF FAIRVALUEACCOUNTING ON FINANCIAL SERVICEFIRMS' BALANCESHEETS, INCOME STATEMENTS,AND ON BANK FAILURES

SOME PROPOSED REFORMS

SOME RECENT DEVELOPMENTS

The FASB Clarification of October 2008

The Group of 30 Report

FASB's 2009 Fair Value Projects

REFERENCES

WRITTEN TESTIMONY OF TANYA S. BEDER[1],CHAIRMAN, SBCC GROUP INC. PREPAREDFOR THE U.S. HOUSE OF REPRESENTATIVES,COMMITTEE ON FINANCIAL SERVICES,SUBCOMMITTEE ON CAPITAL MARKETS,INSURANCE AND GOVERNMENT SPONSOREDENTERPRISES,MARCH 12, 2009

1. ON SUSPENDING MARK-TO-MARKET ACCOUNTING

Recommendation

2. ON "FAIR" VALUE

3.WE SHOULD NOT RELY ON SINGLE MEASURES

4. ON PRO-CYCLICALITY

STATEMENT OF THE COMMERCIALMORTGAGE SECURITIES ASSOCIATION,BEFORE THE UNITED STATES HOUSE OFREPRESENTATIVES COMMITTEE ONFINANCIAL SERVICES SUBCOMMITTEE ONCAPITAL MARKETS, INSURANCE, ANDGOVERNMENT SPONSORED ENTERPRISES,HEARING ON "MARK-TO-MARKETACCOUNTING: PRACTICES ANDIMPLICATIONS",MARCH 12, 2009

BACKGROUND

THE PROBLEM:MARKET DISRUPTIONS AND FVA

POSSIBLE SOLUTIONS.

TESTIMONY OF CYNTHIA FORNELLI ,EXECUTIVE DIRECTOR, CENTER FOR AUDITQUALITY , BEFORE THE UNITED STATESHOUSE OF REPRESENTATIVES COMMITTEE ONFINANCIAL SERVICES , SUBCOMMITTEE ONCAPITAL MARKETS, INSURANCE ANDGOVERNMENT SPONSORED ENTERPRISES ,THURSDAY,MARCH 12, 2009 ,FULL TEXT OF TESTIMONY

INTRODUCTION

THE VALUE OF FAIR VALUE

ADDRESSING CAPITAL ADEQUACY CONCERNS

PROPOSALS FOR IMPROVING FAIR VALUEAND ADDRESSING THE FINANCIAL CRISIS

THE IMPORTANCE OF INDEPENDENT STANDARD SETTING

TESTIMONY OF ROBERT H. HERZ,CHAIRMAN, FINANCIAL ACCOUNTINGSTANDARDS BOARD, BEFORE THE U.S. HOUSEOF REPRESENTATIVES FINANCIAL SERVICESSUBCOMMITTEE, ON CAPITAL MARKETS,INSURANCE, AND GOVERNMENT SPONSOREDENTITIES,MARCH 12, 2009,FULL TEXT OF TESTIMONY

THE FASB

WHAT PROCESS DOES THE FASB FOLLOW INDEVELOPING ACCOUNTING STANDARDS?

THE ROLE OF ACCOUNTING STANDARD SETTERS ANDTHE ROLE OF PRUDENTIAL REGULATORS

WHAT IS FAIR VALUE MEASUREMENTAND ITS ROLE IN ACCOUNTING?

SOME OBSERVATIONS ON RECENT CALLS TO SUSPENDAPPLICATION OF FAIR VALUE ACCOUNTING

IMPACT OF FAIR VALUE ACCOUNTINGON FINANCIAL INSTITUTIONS

FASB STATEMENT NO. 157,FAIR VALUE MEASUREMENTS

FASB IMPLEMENTATION ACTIVITIESRELATING TO FAIR VALUE MEASUREMENTS

INTERNATIONAL FINANCIAL REPORTING STANDARDS

CONCLUSION

TESTIMONY OF ROBERT H. HERZ,CHAIRMAN, FINANCIAL ACCOUNTINGSTANDARDS BOARD, BEFORE THE U.S. HOUSEOF REPRESENTATIVES FINANCIAL SERVICESSUBCOMMITTEE, ON CAPITAL MARKETS,INSURANCE, AND GOVERNMENT SPONSOREDENTITIES,MARCH 12, 2009

ATTACHMENT 1, SUMMARY AND INTRODUCTION OFFASB STATEMENT OF FINANCIAL ACCOUNTINGSTANDARDS, NO. 115, ACCOUNTING FOR CERTAININVESTMENTS IN DEBT AND EQUITY SECURITIES

Summary

Introduction.

TESTIMONY OF ROBERT H. HERZ,CHAIRMAN, FINANCIAL ACCOUNTINGSTANDARDS BOARD, BEFORE THE U.S. HOUSEOF REPRESENTATIVES FINANCIAL SERVICESSUBCOMMITTEE, ON CAPITAL MARKETS,INSURANCE, AND GOVERNMENT SPONSOREDENTITIES,MARCH 12, 2009

ATTACHMENT 2, SUMMARY OF FASB STATEMENT OFFINANCIAL ACCOUNTING STANDARDS NO. 157,FAIR, VALUE MEASUREMENTS

REASON FOR ISSUING THIS STATEMENT

DIFFERENCES BETWEEN THIS STATEMENTAND CURRENT PRACTICE

HOW THE CONCLUSIONS IN THIS STATEMENT RELATE TOTHE FASB'S CONCEPTUAL FRAMEWORK

HOW THE CHANGES IN THIS STATEMENTIMPROVE FINANCIAL REPORTING

COSTS AND BENEFITS OF APPLYING THIS STATEMENT

THE EFFECTIVE DATE OF THIS STATEMENT

TESTIMONY OF ROBERT H. HERZ,CHAIRMAN, FINANCIAL ACCOUNTINGSTANDARDS BOARD, BEFORE THE U.S. HOUSEOF REPRESENTATIVES FINANCIAL SERVICESSUBCOMMITTEE, ON CAPITAL MARKETS,INSURANCE, AND GOVERNMENT SPONSOREDENTITIES,MARCH 12, 2009,

ATTACHMENT 3, NEWS RELEASE, "SEC OFFICE OF THECHIEF ACCOUNTANT AND FASB STAFF CLARIFICATIONSON FAIR, VALUE ACCOUNTING"

TESTIMONY OF ROBERT H. HERZ,CHAIRMAN, FINANCIAL ACCOUNTINGSTANDARDS BOARD, BEFORE THE, U.S. HOUSEOF REPRESENTATIVES FINANCIAL SERVICESSUBCOMMITTEE, ON CAPITAL MARKETS,INSURANCE, AND GOVERNMENT SPONSOREDENTITIES,MARCH 12, 2009

ATTACHMENT 4, FASB STAFF POSITION NO. FAS 157-3,DETERMINING THE FAIR VALUE OF A FINANCIAL ASSETWHEN THE MARKET FOR THAT ASSET IS NOT ACTIVE

Fasb Staff Position

OBJECTIVE

FASB Staff Position

Amendment to Add an Illustrative Example to Statement 157

Effective Date and Transition

TESTIMONY OF ROBERT H. HERZ,CHAIRMAN, FINANCIAL ACCOUNTINGSTANDARDS BOARD, BEFORE THE U.S. HOUSEOF REPRESENTATIVES FINANCIAL SERVICESSUBCOMMITTEE, ON CAPITAL MARKETS,INSURANCE, AND GOVERNMENT SPONSOREDENTITIES,MARCH 12, 2009.

ATTACHMENT 5, NEWS RELEASE, "FASB ISSUES FIRSTOF TWO PROPOSED STAFF POSITIONS TO IMPROVE THEFINANCIAL REPORTING FOR FINANCIAL INSTRUMENTS"

FASB Issues First of Two Proposed Staff Positions to Improve theFinancial Reporting for Financial Instruments

About the Financial Accounting Standards Board

ATTACHMENT 6, NEWS RELEASE, "IASB AND FASBANNOUNCE MEMBERSHIP OF FINANCIAL CRISIS,ADVISORY GROUP"

IASB and FASB Announce Membership ofFinancial Crisis Advisory Group

Notes for editors About the IASB

Overview of the Financial Crisis Advisory Group

Areas within the Advisory Group's purview

Advisory Group Structure and Meetings

Conduct of Its Activities

ATTACHMENT 7, NEWS RELEASE, "FASB INITIATESPROJECTS TO IMPROVE MEASUREMENT ANDDISCLOSURE OF FAIR VALUE ESTIMATES"

FASB Initiates Projects to Improve Measurement andDisclosure of Fair Value Estimates

ABOUT THE FINANCIAL ACCOUNTINGSTANDARDS BOARD

TESTIMONY OF WILLIAM M. ISAAC,CHAIRMAN, THE SECURA GROUP OF LECG,FORMER CHAIRMAN, FEDERAL DEPOSITINSURANCE CORPORATION, BEFORE THESUBCOMMITTEE ON CAPITAL MARKETS,INSURANCE, AND GOVERNMENT SPONSOREDENTERPRISES, U.S. HOUSEOF REPRESENTATIVES COMMITTEE ONFINANCIAL SERVICES,WASHINGTON,DC,MARCH 12, 2009

MARK TO MARKET ACCOUNTING EXPECTED LOSSES VS.MARK TO MARKET WRITE-DOWNS

MBS Description

Losses based on MTM

A. BACKGROUND.

B. TODAY'S PROBLEMS

C. ALTERNATIVES

D.WHO MAKES THE RULES?

OPENING STATEMENT OF CONGRESSMANPAUL E. KANJORSKI, SUBCOMMITTEE ONCAPITAL MARKETS, INSURANCE, ANDGOVERNMENT SPONSORED ENTERPRISES,HEARING ON MARK-TO-MARKETACCOUNTING: PRACTICES ANDIMPLICATIONS,MARCH 12, 2009

TESTIMONY OF KEVIN J. BAILEY, DEPUTYCOMPTROLLER, OFFICE OF THECOMPTROLLER OF THE CURRENCY, BEFORETHE SUBCOMMITTEE ON CAPITAL MARKETS,INSURANCE AND GOVERNMENT SPONSOREDENTERPRISES OF THE COMMITTEE ONFINANCIAL SERVICES OF THE UNITED STATESHOUSE OF REPRESENTATIVES,MARCH 12, 2009

I. INTRODUCTION

II. BACKGROUND ON FAIR VALUE ACCOUNTING

Valuation of Financial Instruments

Definition of Fair Value

Impairment

III. BACKGROUND ON CAPITAL

IV. INTERPLAY BETWEEN FAIRVALUE ACCOUNTING AND CAPITAL

V. CHALLENGES FACED BY BANK AND SUPERVISORS

OTTI

Valuation

VI. CONCLUSION

TESTIMONY OF JAMES KROEKER,ACTINGCHIEF ACCOUNTANT, U.S. SECURITIES ANDCOMMISSION, CONCERNING MARK-TOMARKETACCOUNTING: PRACTICES ANDIMPLICATIONS, BEFORE THE SUBCOMMITTEEON CAPITAL MARKETS, INSURANCE, ANDGOVERNMENT SPONSORED ENTERPRISES,COMMITTEE ON FINANCIAL SERVICES,U.S. HOUSE OF REPRESENTATIVES,MARCH 12, 2009

THE FOCUS OF FINANCIAL REPORTING

THE HISTORY OF FAIR VALUE ACCOUNTING

EFFORTS TO IMPROVE FAIR VALUE ACCOUNTING

CONGRESSIONAL MARK-TO-MARKET STUDY

TESTIMONY OF JEFFREY P.MAHONEY,GENERAL COUNSEL, COUNCIL OFINSTITUTIONAL INVESTORS, BEFORE THESUBCOMMITTEE ON CAPITAL MARKETS,INSURANCE AND GOVERNMENT SPONSOREDENTERPRISES OF THE COMMITTEE ONFINANCIAL SERVICES,MARCH 12, 2009

PREPARED STATEMENT

FULL TEXT OF STATEMENT

The Council[2]

Council Corporate Governance Policies[5]

How Fair Value Accounting AffectsInvestors and the Overall Economy.

Potential Proposals for Regulators and StandardSetters Relating to Fair Value Accounting.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

ISBN:

1-61470-215-2

OCLC:

777548892