FASB drops plan to extend mark-to-market rules to loans

abacus

The Financial Accounting Standards Board (FASB), the United States body tasked with developing the Generally Accepted Accounting Principles (GAAP) used in the country, on Tuesday reversed its position on proposals that would have forced banks to value most of their loans at market prices.

The FASB board decided that loans would instead be measured at amortised cost - a method that used the adjusted historical cost of the loan, which will insulate them from volatility in short-term prices.

Assets

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.