Today the Financial Accounting Standards Board (FASB) changed FAS 157, providing companies more flexibility in determining the fair value of their investments held. In addition, the FASB also granted companies more flexibility in taking impairment charges on investment losses. The changes will take effect in Q2, though companies will be free to report Q1 under the new rules. Continue reading about how FASB eases mark-to-market.
It will be interesting to follow the impact of these rule changes on those companies most affected by the “toxic assets” on their balance sheet. Will the change enable them to workout their problems or will it mask future poor decision making?
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