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.
This blog
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.
