Comment letter to the FASB Discussion Memorandum "New Basis of Accounting"

The American Accounting Association's Financial Accounting Standards Committee responded to a Financial Accounting Standards Board (FASB) discussion memorandum. An overall recommendation made by the Committee was that FASB should make a broad shift to the use of fair values in accounting because issues that are faced in accounting would be resolved by switching to such a model. The primary recommendation was that fair values should be used in those cases in which control has changed, assuming an adequate degree of reliability can be achieved in measuring the fair value of the portion for which control has changed. The Committee comments on several issues addressed in the discussion memoranda are presented.