FASB Chairman Says New Mark-To-Market Guidance Out in "Weeks"

Financial Accounting Standards Board Chairman Robert Herz testified at the House Securities Subcommittee today saying that the agency will introduce new guidance within three weeks about flexibility for companies when it comes to the controversial accounting rules.

"We're going to continue putting more guidance out there."

"For certain situations we may provide some additional guidance for when not to use market based fair value rules, then we have to provide some adjustments."

FASB's Herz talked about a proposal the agency announced last month that it would examine whether a market for an asset or liability is active or inactive. The agency is also considering whether accounting rules need to change when a transaction is distressed or whether investments in hedge funds and private equity shops should be treated more simply from an accounting point of view.