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Home » Store » Taxable » Commitments May Need New Treatment, FASB Says

Commitments May Need New Treatment, FASB Says

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Some subprime loan commitments may qualify as derivatives for accounting purposes the Financial Accounting Standards Board said in a recent update. The Financial Accounting Standards Board is mulling over changes to its guidance on the classification of loan commitments that are treated as derivatives. The advantage to counting the contract as a derivative is that gains or losses on it could then be netted against any hedge that
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