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FASB Might Backpedal on Mark-To-Market Plan

Sep 29th 2010
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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.


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