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U.S. Securities and Exchange Commission

Spotlight On:
Fair Value Accounting Standards

Note: This page has been archived and is no longer being updated. It may include obsolete or out-of-date information.

The Emergency Economic Stabilization Act of 2008, enacted and signed by the President on October 3, 2008, among other things requires the Commission to conduct a study of "mark-to-market" accounting applicable to financial institutions, including depositary institutions, and submit a report to Congress with the findings and determinations within 90 days. Specifically Section 133 of the Act provides as follows:


  1. STUDY.—The Securities and Exchange Commission, in consultation with the Board [of Governors of the Federal Reserve System] and the Secretary [of the Treasury], shall conduct a study on mark-to-market accounting standards as provided in Statement Number 157 of the Financial Accounting Standards Board, as such standards are applicable to financial institutions, including depository institutions. Such a study shall consider at a minimum—
    1. the effects of such accounting standards on a financial institution's balance sheet;
    2. the impacts of such accounting on bank failures in 2008;
    3. the impact of such standards on the quality of financial information available to investors;
    4. the process used by the Financial Accounting Standards Board in developing accounting standards;
    5. the advisability and feasibility of modifications to such standards; and
    6. alternative accounting standards to those provided in such Statement Number 157.

  2. REPORT.—The Securities and Exchange Commission shall submit to Congress a report of such study before the end of the 90-day period beginning on the date of the enactment of this Act containing the findings and determinations of the Commission, including such administrative and legislative recommendations as the Commission determines appropriate.

Information about the Commission's study on "mark-to-market" accounting is provided below.


Requests for Public Comments

  • SEC Study of Mark to Market Accounting (Release Nos. 33-8975, 34-58747; File No. 4-573)
    Comments received are available for this proposal.
    Submit comments on 4-573
  • In addition to the above, the Commission welcomes feedback at any time from investors, financial institutions, auditors and others on the Commission's study of mark-to-market accounting applicable to financial institutions. Comments may be submitted by any of the following methods:

    All submissions should refer to File No. 4-573. This file number should be included on the subject line if e-mail is used. To help us process and review your comments more efficiently, please use only one method. The Commission will post all comments on its Web site (http://www.sec.gov/comments/4-573/4-573.shtml). Comments also will be available for public inspection and copying in the Commission's Public Reference Room, 100 F Street, NE, Washington, DC 20549, on official business days between the hours of 10:00 am and 3:00 pm. All comments received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly.


What Is Fair Value Accounting?



Modified: 12/30/2008