FASB Staff Position FAS No.157-4
As noted earlier in Chapter 1 , some critics of SFAS No.157 maintained that it caused or exacerbated the 2007-2008 market crises by forcing a downward spiral of valuation based on distressed institutions . They also raised concerns that as a result of SFAS No.157 and SFAS No.115( see Chapter 8 ) , financial institutions were forced to book losses on securities that may have value after the credit market crisis has passed . However , proponents of the standard maintained that suspending or revising SFAS No.157 would be a disservice to investors who deserve to know the current value of a reporting entity’s assets and liabilities .