SEC Argues To Keep Mark-To-Market Accounting

Law360, New York (December 31, 2008, 12:00 AM EST) -- The U.S. Securities and Exchange Commission recommended against suspending fair value accounting standards in a report released Tuesday, saying eliminating them abruptly would "erode investor confidence" in an already shaky market.

In its report, the SEC staff, in conjunction with the Federal Reserve and the Department of the Treasury, found that investors believe that fair value accounting standards, including mark-to-market accounting, increased the transparency of financial reports issued by companies and made them better equipped to make financial decisions.

The SEC's findings ran counter to critics...
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