SEC Commences Work on Congressionally Mandated Study on Accounting Standards

The Securities and Exchange Commission announced yesterday additional details on the process and initial steps that the SEC has undertaken to conduct a study on "mark-to-market" accounting, as authorized by Sec. 133 of the Emergency Economic Stabilization Act of 2008.

The study will focus on:The effects of such accounting standards on a financial institution's balance sheet

1. The impacts of such accounting on bank failures in 2008
2. The impact of such standards on the quality of financial information available to investors
3. The process used by the Financial Accounting Standards Board in developing accounting standards
4. The advisability and feasibility of modifications to such standards
5. Alternative accounting standards to those provided in FAS 157

The study is to be completed by Jan. 2, 2009.