Roundtable Requests Financial Accounting Standards Board (FASB) Suspend Mark-to-Market Accounting
March 30, 2020
This week, the Roundtable submitted a letter to the Financial Accounting Standards Board (FASB) to take action to immediately suspend mark-to-market accounting. It is simply not possible to properly value assets in illiquid and non-functioning markets.
The rationale for this view follows. We are concerned that the “mark to market” or “fair value” (FAS 157) accounting rules will further exacerbate the growing financial crisis. As liquidity diminishes, the value of asset-backed securities (ABS) collateral (including commercial mortgage-backed securities, or CMBS) will continue to decline.