When Congress approved the $700 billion bailout bill earlier this year, it gave the Securities and Exchange Commission leeway to suspend Financial Accounting Standard 157, which details how fair value must be measured. Monday, SEC Chairman Christopher Cox announced the agency would not recommend suspension of FAS 157.
According to CFO.com, Cox said:
Accounting standards aren't just another financial rudder to be pulled when the economic ship drifts in the wrong direction. Instead they are the rivets in the hull, and you risk the integrity of the entire economy by removing them.
Cox's remarks at an American Institute of Certified Public Accountants also concentrated on the continuing need for transparency in accounting standards, as well as the need to make sure that accounting standards stay current.