FASB set to change off balance sheet accounting

The Financial Accounting Standards Board has issued a warning that off
balance sheet accounting could be overhauled.

The US standard setter said that current accounting rules have been abused
and that there are calls to bring them back on balance sheet The

Robert Herz, FASB chairman said: ‘My own view is that the current accounting
has been stretched and abused.’

‘It has been treated as a punch bowl and we have got to take away that punch
bowl’ he added.

Further reading:

FASB plans
proposal on off-balance accounting soon

raises $5,000bn balance sheet fears

Related reading

Fiona Westwood of Smith and Williamson.