Fair Value Accounting
The CAQ strongly defended fair value (or mark-to-market) accounting standards against calls for suspending the practice in the aftermath of the economic crisis in 2008 and 2009. CAQ Executive Director Cindy Fornelli sent a September 2008 letter to members of Congress stating that proposals to suspend fair value “are not in the best interest of investors or the capital markets and should be rejected.”
The CAQ collaborated with investor groups, including the Council of Institutional Investors, CFA Institute and Consumer Federation of America, to oppose calls for suspending fair value accounting. In a joint letter in February 2009, the four organizations applauded Congressional efforts to restore investor confidence in the U.S. capital markets, but cautioned against a retreat from fair value.
In March 2009, Fornelli urged members of the House Financial Services Committee’s Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises to reject calls for suspending fair value accounting during a March 2009 hearing.
Read more about this topic: Center For Audit Quality
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