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Accounting Standard-Setters to Convene re: Credit Crisis Issues

The US and International Accounting standards boards are convening an advisory group to address issues stemming from the credit crisis – starting with fair-value rules.

[via – emphasis mine]

While central bankers and G7 leaders work to form panels to respond
to the global banking crisis, accounting standard-setters are doing
their part to do the same. On Thursday, the U.S. Financial Accounting
Standards Board and the International Accounting Standards Board
created an advisory group to deal with financial reporting issues that
bubble up from the credit crunch.

The boards will convene on Oct. 20 for a two-day meeting to discuss
the initial topics for the advisory board to consider. It is likely
that one of the first topics to be addressed will be the application of
fair value accounting to financial instruments in illiquid markets.
Current fair value rules have been a lightening rod for criticism, as
some critics have demonized the mark-to-market methodology as
exacerbating the subprime mortgage crisis and sending the credit
markets into a tailspin.


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