The Financial Accounting Standards Board is at odds with the International Accounting Standards Board over attempts to converge standards for fair-value accounting. Proposed expansion of fair-value accounting by the FASB would require lenders to record deposits and loans at market value, a practice met with resistance internationally because it could lead domestic banks to undervalue loans by as much as $138 billion. "If you asked this question in the U.S. 15 years ago, the standard answer would be: 'You're nuts -- the U.S. has the best accounting standards, and everybody should follow ours.' Today, that's not a credible answer," said former Federal Reserve Chairman Paul Volcker.

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