Rep. Calvert Applauds New FASB Rule on Mark to Market Reporting

Press Release

REP. CALVERT APPLUADS NEW FASB RULE ON MARK TO MARKET REPORTING

Rep. Calvert and Other Members Sent Letter to FASB in March on Rule Change

Today Rep. Ken Calvert (R-CA) applauded the new guidance issued by the Financial Accounting Standards Board (FASB) that states that an asset is valued and based on an "orderly" transaction between a buyer and seller; it would not include distressed transactions or fire sales.

"Mark to market rules have forced businesses and financial institutions to write down the value of their assets to the most conservative levels despite the fact that they have not experienced any actual loss because the asset remains on their books," said Rep. Calvert. "Right now our economy is experiencing enough loss in value. We do not need to manufacture loss by an over-conservative use of asset valuation."

On March 10, 2009, Rep. Calvert, along with five other Members of Congress, sent a letter to FASB and the Security and Exchange Commission asking for a rule change on mark to market rules. In part, the letter states:

"In these uncertain times, it is important that we work to create as much transparency in the market as possible, while recognizing the value of proper disclosure."

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