It was difficult to find, and Roubini and the rest of the Doomsters don't seem to know about this, but for the benefit of the good denizens of this thread, I point out that indeed there may be a delay in the full implementation of FASB 157. The scamsters and the Dark Side are not about to give up without a good fight.
Buried in the small print on an obscure site is this announcement. Read it and search yourself for info suggesting whether the deferral will apply to banks and institutions who deserve a good shorting. I don't think so but the politics on this will be treacherous and slippery.
Keeping track of the politics on FASB 157 is difficult and not doubt things have changed since 10/17, when this announcement was made, although it seems to suggest that the FASB intends to keep the essence and timing of the rule intact but note that 'the size of the entity' may make a difference, e.g., does that mean that the bigger the fish, the smaller the net? Who knows.
mcgladrey.com
FASB considers deferral of statement No. 157
Currently, there is much discussion about the implementation of FASB Statement No. 157, Fair Value Measurements, which is effective for fiscal years beginning after November 15, 2007 and interim periods within those years. Although this Statement does not require any new fair value measurements, it changes the methods used to estimate fair value and expands disclosures about estimates of fair value. On October 17, 2007, the Financial Accounting Standards Board (FASB) discussed a delay in the effective date of FASB Statement No. 157 for one year. Constituents had expressed concern over their ability to resolve various implementation issues and comply with the requirements of Statement No. 157. The Board decided against a wholesale deferral of the Standard, but requested that the FASB staff evaluate alternatives for deferring the Standard for certain companies or instruments. Possible alternatives discussed at the meeting included deferring the Standard based upon size of the entity, type of instrument (i.e., non-financial instruments only), and for non-public companies.
Any recommendation for deferral presented by the FASB staff is likely to include a requirement that an entity which has not adopted Statement No. 157 provide additional disclosures for interim and annual periods. The FASB staff was also requested to prepare and present significant implementation issues for discussion by the Board at future meetings.
According to KPMG, the delay in the implementation of FASB 157 is being considered with respect to derivatives, hedge instruments, all the worthless crap that needs to be fairly valued. So, read on, pay your money take your chances.
In my estimation, delaying this is futile. The more investors know of the political games being played and the collusion of the FASB with the Dark Side and the Wall St. scamsters, the less confidence in the system investors will have. To resist valuing worthless crap for what it is will be a futile loser's game. Here's KPMG's discussion of the proposed delay:
kpmg.com.cn |
