(SIFMA) today issued the following statement on the new guidelines announced by the Financial Accounting Standards Board (FASB):
“SIFMA welcomes FASB’s clarification of the appropriate application of FAS 157 in valuing securities in inactive markets. The Board’s actions today re-establish the intent underlying the Statement, which is to provide users of financial statements with transparency into the financial information of issuers that is critical to properly functioning capital markets. In particular, we are pleased that the determination that a given market is illiquid does not automatically require the abandonment of all pricing information relating to transactions in that market, but instead will be based upon an analysis of all relevant facts and circumstances."
