FASB Proposes Guidance on Fair Valuation Accounting Standards

March 30, 2009
The Financial Accounting Standards Board recently proposed for comment FSP 157-e, a staff position that builds on prior guidance regarding fair valuation determinations under Statement of Financial Accounting Standards 157. FSP 157-e proposes a two-step process for determining whether a market for a financial asset is inactive and, if so, whether a transaction in the market is distressed. This update examines FSP 157-e, which, if adopted, would impact how registered investment companies and other issuers determine fair valuation measurements under FAS 157.