This is infuriating. When will the deception and fraud stop!
It is actions like these by the Solon’s that has turned a ‘crisis of confidence’ into something that has brought the global financial markets to their knees.
The FASB is being pressured by the lawmakers to delay its time line on the revamped FAS 140 and FIN 46R. This of course will help out the financial institutions by creating less transparency and delaying the inevitable probably due to a new tax payer bailout being drawn up that will channel more dollars to parties other than those who need it, the US citizens.
Hasn’t everyone learned by now that transparency and confidence is the name of the game. -Best Mortgage
NEW YORK, July 28 (Reuters) – The Financial Accounting Standards Board, under pressure from lawmakers, will reconsider its time line for a controversial rule change that may force banks to bring trillions of dollars in off-balance sheet assets onto their books at its Wednesday meeting.
FASB, which sets U.S. accounting rules, will reconsider the rule’s effective date and transition provisions, according to a schedule posted on its website. Additionally, “the Board will consider transitional disclosures and the timing of both projects,” FASB said on its website.
FASB voted in April to revamp two accounting standards known as FAS 140 and FIN 46R, to eliminate a concept known as the “qualifying special-purpose entity,” or QSPE, that banks use to keep assets like mortgage-backed securities and special investment vehicles off their balance sheets.
The board is expected to release its proposal by the end of August and leave it open for public comment for 60 days. It has suggested parts of the new rule could be applied as soon as next year for companies with fiscal years beginning after Nov. 15th.
Troubles in those off-balance sheet assets have been blamed for helping trigger the credit crisis. FASB members have said they believe the current rules prevented investors from understanding the true risks banks faced.
Analysts have estimated the rule change could force banks to bring $5 trillion in assets onto their books. Continued…