Financial Crisis Advisory Group to Meet

The first meeting of the Financial Crisis Advisory Group (FCAG), set up jointly by the International Accounting Standards Board (IASB) and the U.S. Financial Accounting Standards Board (FASB) to consider financial reporting issues arising from the global financial crisis, will take place in London January 20. Yes, that’s inauguration day here in the U.S. Among the issues the group will look into are the findings of the recent Securities and Exchange Commission’s (SEC) study on Fair Value Accounting Standards (a.k.a. mark-to-market accounting). Meanwhile, an organization of major insurers and reinsurers  has said that fair value accounting measurements were a powerful accelerant to the worldwide credit crisis. In a December 4, 2008 comment letter to Robert Herz, FASB Chairman, the Group of North American Insurance Enterprises (GNAIE) said the application of fair value accounting measurements to an inactive, illiquid and disorderly market for structured credit products helped fuel the worldwide credit crisis. Check out an I.I.I. update on proposed international accounting standards.

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