The Financial Accounting Standards Board has provided new flexibility to allow banks and other financial institutions to reprice their assets during the credit crisis by amending its standard on fair value measurements.The FASB Staff Position clarifies the application of FASB Statement No. 157 in an inactive market and provides an illustrative example to demonstrate how the fair value of a financial asset is determined when the market for that asset is inactive.

At an October 10 meeting, FASB considered the proposed amendment, which it had put out for comment on Oct. 2 on an accelerated schedule. FASB said that it received over 100 comment letters in just a week's time, and at the meeting the board made some modifications to the proposed staff position and planned to quickly issue it.

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