SEC modifies fair value

Author: | Published: 17 Nov 2008

The SEC clarification to fair value accounting will place more trust in bank accountants, hopefully building relationships between counterparties again as pressure is put on in-house valuations.

While the clarification, which reverts the rules back to US Financial Accounting Standards Board Statement 157, does not eliminate all fair value requirements it does allow accountants to estimate loan values and eliminate the mark-to-market standards the SEC introduced in November of last year.

The fair...