ALERT: The Securities and Exchange Commission and the Financial Accounting Standards Board Release Clarifications on Fair Value Accounting

The Securities and Exchange Commission (SEC) and Financial Accounting Standards Board (FASB) yesterday issued interpretative guidance (the “Clarifications”) on fair value accounting that affords greater flexibility to banks and other holders of illiquid securities in estimating asset values under FASB’s fair value measurement rule, Statement of Financial Accounting Standards No. 157 (SFAS 157). These Clarifications have been issued in advance of additional interpretative guidance that the SEC and FASB intend to release by the end of this week.

This alert was produced by Akin Gump’s litigation section. Download the full text here.