It seems that at least people overseas are somewhat intelligent about financial matters. Hiding hideous losses under pretend accounting has never worked. At least IASB has the guts not to fold before political posturing . . . . . so far. For those who have been living under a rock, FASB caved in to Congressional pressure when politicians desperate to protect their lobbyist friends on Wall Street issued a de facto order to change accounting rules. The vote was approved yesterday for certain modifications to mark to market, or "fair value" accounting.
DJ Intl Acctg Board: No Change For Now In Fair-Value Rules -FT
DOW JONES NEWSWIRES
The International Accounting Standards Board has announced it won't follow the lead of its U.S. counterpart, which agreed Thursday to ease "mark to market" rules in a bid to boost banks' finances, the Financial Times reported Friday.
Banks that follow the London-based IASB's rules therefore won't get the break conceived for their U.S. rivals by the Financial Accounting Standards Board's unexpectedly swift move away from so-called fair-value accounting.
The IASB, whose rules apply in more than 100 countries, including those of the European Union, has said it will instead proceed with a full, faster review of how it accounts for financial instruments. A draft proposal is expected in less than six months.
Many U.S. banks had urged relaxation of the rules, saying it was unfair to be forced to peg investments' value to market fluctuations, resulting in big losses, when such ups and downs are temporary.
Full story at http://www.ft.com/cms/s/0/cc428a96-1fe4 ... abdc0.html