SEC to explore mark-to-market alternatives

The US Securities and Exchange Commission is to take mark-to-market accounting to task in a series of roundtables that will examine the role fair value played in the current market turmoil.

The first roundtable takes place on 29 October and consists of two panels, one discussing the relationship between fair value and the financial crisis that has enveloped the major banks with the second examining potential changes to the current accounting models.

Fair value has been lambasted by financial figureheads and politicians in the US, UK and Europe for intensifying the effects of the credit crunch, with many calling for the model to be suspended during the current turmoil.

‘These roundtables will provide the Commission with valuable insights from investors, issuers, and others affected by recent developments in the marketplace,’ said SEC chief accountant Conrad Hewitt. ‘We are interested in hearing participants’ views on transparency and usefulness of reported financial information in times of market turmoil.’

Further reading:

FSA chief says mark to market must be debated

Europe battles over fair value carve out