The Texas Society of CPAs warned the Financial AccountingStandards Board that FASB's recently approved changes in fair value accountingstandards could damage the credibility of CPAs in general.
The TSCPA's Professional Standards Committee issued astatement urging FASB to spend more time working on the changes beforeimplementing them. FASB approved the changes after a mere two-week commentperiod following a congressional subcommittee hearing in which FASB ChairmanBob Herz was pressured to rush through the changes within three weeks or facecongressional action (see FASB Compromises on Fair Value).
The Texas accountants weighed in with comments on FASB'stwo proposed staff positions, saying that the committee "is cautious thata 'quick fix' to the new guidance might damage the credibility of theaccounting profession. The committee asks FASB to deliberate the issues over alonger period of time."
In response to changes in the main fair value standard,FAS 157-e, the TSCPA committee warned FASB to reconsider. "The committeerespectfully encourages FASB to reconsider this guidance and spend more timedeveloping an approach and include input of the International AccountingStandards Board in deliberations," said the TSCPA PSC statement. "TheTSCPA committee believes that time spent on resolving the issue will result inmore stable financial markets and greater confidence in the financial reportingprocess."
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