Proposed FASB Accounting Change Could Impact Credit Availability
By Ron Trzcinski, 410-935-5844
(410-935-5844 Office)
Proposed FASB Accounting Change Could Impact Credit Availability On September, 24, 2010, The National Association of Realtors (NAR) submitted comments to the Financial Accounting Standards Board (FASB) on a recently proposed accounting rule change that, if implemented, could severely impact liquidity for businesses and consumers. Under this proposal, financial institutions would be required to book their loans at current market value, a method known as "fair value" or "mark-to-market" accounting. As a result, some banks would be forced to take huge write downs or losses, particularly during periods of economic distress. Consequently, credit to the real estate industry would be further constrained, hindering our nation's economic recovery. NAR is concerned that the recent FASB mark-to-ma...
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