FASB Might Backpedal on Mark-To-Market Plan
Earlier this week, I blogged about an article in Crain's Detroit Business titled The Price Of Change - Proposed Accounting Rules Could Cry Up Capital For Business, Banks Say . The article essentially read like a bank lobbyist writing against the FASB proposal to require loans that will never be sold to be measured on a mark-to-market basis otherwise capital will dry up. I thought that ridiculous.
But not surprisingly, the comments have been OVERWHELMINGLY against the proposal. Reuters reports a hybrid approach is likely.
My reaction: No surprise. I didn't say (I think!) in my previous post that I agreed with the proposal but that I thought the reaction of the banking industry was way overdone. As an aditor, I personally find fair value measurements an annoyance, and my clients don't like them easier. Fortunately for me, we don't (currently at least) do any banks.
Joel M. Ungar, CPA is a lifelong resident of the Detroit area and a graduate of The University of Michigan. He is a principal with Silberstein Ungar, PLLC, a Top 15 auditor of SEC public reporting companies. Joel writes observations on different matters and especially on working with and using LinkedIn. He thinks he has a sense of humor.