FASB 157 clarified asset valuation practices for publicly traded companies in the US, requiring assets to be divided into three categories based on reliability of fair value estimates. The change led to significant writedowns and revealed the true value of many companies, but did not cause the financial crisis of 2007. FASB 157 was a […]

FASB 157 clarified accounting practices for asset valuation in US public companies, dividing assets into three categories based on reliability of fair value estimates. Its implementation in 2007 led to significant writedowns at major companies, and the global financial crisis highlighted the importance of accurate asset valuation. FASB 157 was a publication issued by the […]

FASB 157 clarified asset valuation practices for publicly traded companies in the US, requiring assets to be divided into three categories based on reliability of fair value estimates. Tier-three assets, such as mortgage-backed securities, were difficult to value and led to significant write-downs for companies. The publication was necessary to provide investors with a more […]