US rule maker appeases banks
FASB moves closer to the international standard setter on accounting for loan books
US BANKS appear to have won an important concession from their accounting watchdog in the way they value loans books.
The Financial Times reports this morning that the move brings the US accounting standard setter, FASB, closer to the approach laid out by international accounting standard setter.
FASB had insisted assets such as loans should valued using fair value but will now use a cost based method.
The accounting for financial assets has been at the heart of an intense debate since the financial crisis began between politicians, banks and the standard setters.