Financial Accounting Standards Board Issues Staff Position on Fair Value Accounting

After meeting to discuss the public comments received on FSP FAS 157 on Fair Value Accounting, the Financial Accounting Standards Board (FASB) issued staff guidance on the scope of the FSP. The FASB affirmed its decision that the FSP should be limited to financial assets and will be effective upon issuance for third quarter financial statements.

Statement 157 was amended to include an illustrative example of how to determine fair value when a market is not active.  The staff position may be found here.