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Equal Opportunity

Just when you thought it was safe for the banks to come out of hiding and begin lending again, the Financial Accounting Standards Board (“FASB”) has proposed, in the interests of transparency, that financial statements incorporate both amortized cost and fair value information about financial instruments held for collection or payment of cash flows. In other words, banks may be required to use market values for loans on their books and join the rest of the world in an annual valuation exercise and give up the longstanding practice of using original adjusted cost.

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Written by: | Categories: Freshly Minted, Market Commentary | June 3rd, 2010 |


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