In the wake of the Enron crisis, "fair-value accounting" seemed like a good idea. It was designed to create reporting uniformity and make it harder to play games. But it's turning out poorly for Wall Street in the on-going credit crunch. "Rather than making things clearer, the fair-value accounting rules only point to the futility of pricing assets every day in highly volatile markets when the credit markets are frozen solid," Forbes reports. All the while, the problem of risky assets continues to mount. Wall Street still has not fully dealt with Level 3 assets. But you have to ask: What is the alternative? Can we afford to go back in time? The SEC will convene at a conference on this vexing issue July 9. For now, the pain--and possibly more writedowns--will continue.  

For more:
- here's the Forbes article [1]