On December 30, 2008, the Securities and Exchange Commission (the “SEC”) issued its study1 on fair value accounting.2 The study recommends that existing fair value accounting and mark-to-market standards, including Financial Accounting Statement 157 (“FAS 157”), should not be suspended. The report recommends improvements to existing accounting practices, including reconsidering the accounting for impairments and the development of additional guidance for determining fair value of investments in inactive markets, including situations where market prices are not readily available.

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