Lenders in General Support Fair Value Option For Financial Assets, But Some Split Over Details
April 21, 2006
Mortgage lenders are backing a proposed new accounting standard that would give companies the option to use fair value accounting for a wide range of their activities, including new loan commitments. The Financial Accounting Standards Board is now weighing some 70 comment letters filed in response to its proposed statement on “The Fair Value Option for Financial Assets and Financial Liabilities.” Mortgage industry sources hailed the so-called FVO as a major step in allowing companies…