FASB backs down over bond accounting

Link: FASB proposal meets stiff opposition

The US Financial Accounting Standards Board responded to lobbying by suspending a section of its EITF03-1 guidance, which would require the value of bond holdings to be marked down the when rates rise, The Financial Times reported.

With further interest rates expected soon, there had been fears that accountants’ interpretation of the rule might lead to a significant down grading of the bonds.

Related reading