FASB Takes A Trip Down Memory Lane

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After going through a crisis described as 'once in a lifetime', it would make some sense for regulators to take a close look at what the world looked like during a six-sigma event on the off-chance lightning strikes twice. But the folks at FASB would rather focus on the now alternate universe where such thoughts as 'what would happen if two major investment banks, the entire auto industry, and one of the largest insurance companies went literally or effectively bankrupt' are met with genuine laughter. The accounting overlords have a proposal in the works which would require companies to utilize alternative methodologies to provide valuations for their Level 3 assets based on "reasonably possible" scenarios. If you want to know what they're worth when those unreasonably possible scenarios hit, you're on your own.
FASB eyes more disclosure on illiquid assets [Reuters]

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