Now, the financial community has had enough experience with FAS 133 that companies and constituents better understand this process and are less critical of the volatile impact on earnings.
Many companies outsource this data collection to ensure that industry methods and standards are achieved.
The quirkiness of the effective date and its 'earlier' implementation requirements caught some practitioners and impacted financial statement preparers a bit off-guard.
In light of recent financial market turmoil linked to the mortgage and banking crisis that reached new degrees of severity in 2008, FASB was concerned new required disclosures for sellers of credit protection (such as institutional investors opening sell protection credit default swaps ("CDS") contracts) needed to be quickly implemented as financial statement readers needed to know more about the risks associated with those types of arrangements, which were associated with and/or contributed toward the recent failure of Lehman Brothers and AIG.
SEC asked FASB to review accounting for hedging derivatives when counterparties change[2]