NEW YORK, May 26 (Reuters) - The Financial Accounting Standards Board, which sets U.S. accounting rules, released a proposal on Wednesday that could change how companies account for financial instruments such as loans and debt securities.
FASB, which has been debating the changes for months with the London-based International Accounting Standards Board, said it proposes to require that companies provide new information on certain financial instruments on both an amortized cost and mark-to-market, or fair value, basis.
'The proposal would impact the reporting by financial institutions and all other entities that have financial instruments as the goal of greater transparency in financial statements is pursued,' Chairman Robert Herz said in a statement.
The proposal aims to improve the information investors get about bank balance sheets in the wake of the credit crisis. It will also provide more timely information on expected credit losses, the FASB said in a statement.
The proposal will be open for public comment.
(Reporting by Emily Chasan; editing by Andre Grenon) Keywords: FASB/RULES CHANGES (emily.chasan@thomsonreuters.com +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
FASB, which has been debating the changes for months with the London-based International Accounting Standards Board, said it proposes to require that companies provide new information on certain financial instruments on both an amortized cost and mark-to-market, or fair value, basis.
'The proposal would impact the reporting by financial institutions and all other entities that have financial instruments as the goal of greater transparency in financial statements is pursued,' Chairman Robert Herz said in a statement.
The proposal aims to improve the information investors get about bank balance sheets in the wake of the credit crisis. It will also provide more timely information on expected credit losses, the FASB said in a statement.
The proposal will be open for public comment.
(Reporting by Emily Chasan; editing by Andre Grenon) Keywords: FASB/RULES CHANGES (emily.chasan@thomsonreuters.com +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.