Board consulting with U.S. and international bodies before making its choice
The Financial Accounting Standards Board approved planned changes to mark to market accounting rules on Thursday, pleasing some in the U.S. financial industry, but raising concerns for others.Research firm CreditSights Inc. explains that the new position will allow banks to value securities using cash flow models rather than market prices when markets are considered not […]
Any relaxation would take pressure off of financial institutions
Banks and insurers should use market prices in most circumstances
Fair value accounting is not working effectively
Companies will face widespread reporting challenges related to disclosure
Temporary change will ease valuations for assets in markets with little liquidity
Credit crisis has highlighted the need for clear presentation of financial information
Some say suspension of the accounting rule tying value to current markets is crucial
Curtailment of packaging assets and selling them as securities would require big hike in loan loss reserves at U.S. banks