Buzz Archive:
Controversy Over Fair Value, Mark to Market Accounting: FAS 157
by Joseph W. Bartlett, Of Counsel, Sullivan & Worcester LLP and Founder of VC Experts.com, 12/9/2008
The 21st century with all of its technological advancements and so-called progress, has brought about many new and unforeseen phobias. For example, did you know that half of our population now suffers from nomophobia, a fear of being out of mobile phone contact? We even have a name for those who are afraid of technology -- technophobias. If we were honest, most of us suffer to some degree from agmenophobia, the fear that the queue we join will end up being slower than the other one.
While it hasn't technically been given a fancy phobia name yet, there is a new widespread fear that has developed in the past twelve months among U. S. bankers. It is the FAS 157 fear. The Financial Accounting Standards Board (FASB) Statement No. 157 "Fair Value Measurements" became effective for entities with fiscal years beginning after November 15, 2007 in order to regulate the valuation of bank assets. These valuations are of critical importance because they are the basis for all bank lending.
Since none of our readers suffer from gnosiophobia, the fear of knowledge, we know you will want to read this week's Buzz to learn more about the controversy surrounding FAS 157 from our own Joseph Bartlett, Of Counsel at Sullivan & Worcester LLP and Founder of VC Experts.com.
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