U.S. Chamber: Opportunity Missed to Solve Accounting Crisis

"Accounting Rules Must Provide Meaningful Information, Not Drive Business Decisions," Quaadman Says

WASHINGTON, D.C.-The U.S. Chamber of Commerce's Executive Director of Financial Reporting and Investor Opportunity Tom Quaadman issued the following statement today following the Financial Accounting Standards Board's (FASB) decision to ease mark-to-market rules:

"FASB took one step forward and one step backwards. We are pleased that FASB took up Chamber positions to recognize real economic losses by changing impairment rules. However, by taking away the proposed bright line test on the use of judgment they have taken away the clarity needed to value assets. FASB wants firms to use orderly transactions in inactive markets to value assets. Inactive markets by definition are disorderly.

"For months the Chamber has pressed for commonsense improvements to fair value that are pro-investor and pro-capital markets. There's no doubt the accounting rules were accelerating the current financial crisis.

"While we have made important progress significant problems remain with asset valuations and the need for auditor guidance. If those issues aren't addressed, and soon, any progress made today will go by the wayside."

The U.S. Chamber is the world's largest business federation representing more than
3 million businesses and organizations of every size, sector, and region.

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