FASB issues statements on final GAAP hierarchy, insurance guarantee contracts; exposure draft on loss contingencies.

The Financial Accounting Standards Board (www.fasb.org) recently issued FASB Statement No. 162, The Hierarchy of Generally Accepted Accounting Principles. Statement 162 is effective 60 days following expected approval of Public Company Accounting Oversight Board Auditing Standard No. 6, Evaluating Consistency of Financial Statements, by the Securities and Exchange Commission. The statement applies to the financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles.

The FASB also has issued FASB Statement No. 163, Accounting for Financial Guarantee Insurance Contracts. The new standard clarifies how FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises, applies to financial guarantee insurance contracts issued by insurance enterprises, including the recognition and...