Guidance for Investors Regarding FASB's Mark to Market Proposal

Accounting Changes Proposed by FASB

The Financial Accounting Standards Board (FASB) has issued an exposure draft (proposal) that will significantly revise accounting for banking institutions. The proposal requires that all financial instruments be marked to market ("fair value") on the balance sheet – including loans. The revisions could radically change how investors and customers view banking institutions and could also change banking products. FASB often says that investors want mark to market accounting; however, in conversations with bank analysts and investors, ABA has found this not to be the case. Similarly, the International Accounting Standards Board (IASB) has found that investors do not want mark to market for assets held long-term, and the IASB rejected it in its final rule addressing which assets must use mark to market accounting, "IFRS 9".

The purpose of this web page is to help bank investors understand the proposal. 

Understanding the proposal 

 Summary of the FASB proposal
 
 Copy of the Exposure Draft (218 pages)

 Banker Concerns with Mark to Market Accounting

 Frequently Asked Questions About Mark to Market Accounting

 Accounting Resources, including ABA position papers and what others are saying about Mark to Market Accounting

Contact for further information:
Donna Fisher, (202) 663-5318, Mike Gullette, (202) 663-4986.