Recall that as part of the massive $700 billion package passed by Congress in October, the SEC was required to study fair value accounting and the role it played in the recent credit market pyrotechnics. The law also affirmed the SEC's authority to suspend mark-to-market accounting, and some thought the industry had a real chance at having the rule suspended. But no such luck. The SEC has issued its report along with a recommendation that the rule be left intact.

The 259-page report also concluded that accounting rules "did not appear to play a meaningful role" in the many failures last year, reports the AP. The industry now will likely focus on ways to effect alternative valuation techniques under existing rules and guidance, notably the use of FAS 115.

For more:
- here's the AP article

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