2/10/2009

Critics have blamed fair-value accounting for exacerbating financial-market instability. What is really at issue, however, is the subjective assessment required when determining whether impairment should be considered "other than temporary," according to this article. Financial institutions and companies that hold corporate debt, equities or structured investment securities are facing such decisions. On Jan. 12, FASB published guidance designed to simplify the assessment process.

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