SFAS 159 requires that once fair value has been adopted for a class of securities, the company can reverse the option after one year.

Question

Quizplus · Accepted Answer

SFAS 159 does not require companies to reverse fair value accounting for securities after one year. Once fair value has been adopted, it becomes the new basis for accounting for those securities unless there is a change in circumstances that justifies a change in accounting method.

SFAS 159 Requires That Once Fair Value Has Been Adopted