Rulemakers Set to Change How Banks Value Loans

The world's two top accounting standard-setters say they expect to issue a controversial proposal in the coming weeks that could change how banks value the loans on their books, reports Reuters.

 

Citing International Accounting Standards Board Chairman Sir David Tweedie and U.S. Financial Accounting Standards Board Chairman Robert Herz, Reuters notes the proposal on financial instrument accounting would be open for public consultation and considered with other proposals about how management views credit impairments more formally in the fall.

 

The issue on how banks should value financial instruments has been debated among the rulemakers over the past few months, says Reuters. The IASB proposed to have those assets valued at amortized cost, while the FASB suggested all financial instruments should be valued at market levels.

Read more on

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern