Apr 02 , 2009
Companies Get More Leeway on Mark-to-Market RulesFASB proposes to allow companies more judgment in determining if a market for an asset is active and if a transaction is "distressed"
The Financial Accounting Standards Board, which sets U.S. accounting rules, proposed Monday to allow companies to exercise more judgment in determining if a market for an asset is active and if a transaction is "distressed."
FASB put the proposals out for comment, with the hope of having the mark-to-market accounting guidance approved in time for companies to use it when preparing their first-quarter financial reports.
Board members said the guidance could help boost fair values, or mark-to-market values, and get investors more interested in U.S. banks.
Some U.S. banks and lawmakers have urged regulators to ease mark-to-market accounting rules that have triggered billions of dollars in writedowns and have been blamed by some for impeding the economic recovery effort.
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