October 17, 2007
FASB DECIDES NOT TO DEFER FAIR VALUE MEASUREMENT
In a close 4-3 vote, FASB voted not to propose a broad deferral of the effective date of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157).  SFAS 157 provides rules for how to calculate fair value and what disclosures are required. FASB was debating whether to defer the effective date of SFAS 157 for one year, thereby making it effective for fiscal years beginning after November 15, 2008.  Instead, FASB instructed its staff to look at the possibility of a limited deferral for nonpublic companies and/or nonfinancial instruments affected by the standard.  A deferral of the entire standard would have also resulted in a deferral of the effective date of Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, which allows an entity to elect fair value treatment for many of its financial assets and financial liabilities.  In the meantime, banks are struggling to get answers from their auditors on implementation questions with both standards.  AmBA is continuing to educate FASB on the difficulties of complying with SFAS 157 by year end.   

We are interested in hearing about your implementation issues, so please contact AmBA's Accounting Policy Advisor, Charlie Gilman, at 202.663.4986 or cgilman@aba.com.