|
|
Contact:
|
Robert Schmermund
(202) 857-3104
Jim Eberle
(202) 857-3145
|
Jim Eberle
(202) 857-3145 (work)
(703) 893-2593 (home)
[email protected]
|
For Immediate Release
July 3, 2001
#01-46 |
|
E-mail:
[email protected] |
|
| |
ACB STRONGLY OPPOSES REQUIRING BANKS TO APPLY FAIR VALUE TREATMENT
WASHINGTON, D.C. — America’s Community Bankers strongly opposes requiring banks to apply fair value treatment to all financial assets and liabilities because a proposal by a group of international accounting standards-setters would impose high reporting burdens
and be of little value to shareholders, creditors, depositors and other
financial statement users.
“Fair value treatment is simply not the definitive way to look at many ‘banking book’ assets and liabilities that are held to maturity, particularly those core banking products such as
loans to small businesses and individuals, and customer relationships such as
deposit intangibles,” ACB said in comments to the Financial Accounting
Standards Board on recommendations made by a majority of members of the
international Financial Instruments Joint Working Group.
“While some additional footnote disclosures of valuation assumptions may be warranted, the scope of the Joint Working Group’s proposal is much too broad,” ACB said.
ACB said it doesn’t oppose further analysis of the issues, but sees no compelling case for movement to actual implementation until a number of concerns are addressed. ACB noted that Federal Reserve Board Gov. Lawrence Meyer and the Basel Committee on Bank Supervision
previously submitted comments expressing grave concerns about the advisability
of applying fair value accounting to financial instruments.
The comment letter is attached.
America’s Community Bankers is the national trade association committed to shaping the future of
banking by being the innovative industry leader strengthening the competitive position of
community banks. To learn more about ACB, visit
www.AmericasCommunityBankers.com.
-30-
|
| |
About
ACB |
Government Relations | Products
& Services | Affiliates
| Members
Area
| ACB
News Bank | In
The Community | Tools
& Resources | Contact
Us |
America’s Community Bankers
900 Nineteenth Street, NW, Suite 400,Washington, D.C. 20006
phone 202-857-3100 | fax 202-296-8716 | [email protected]
Copyright 1996-2002 © America’s Community Bankers. All Rights Reserved.
|
|
|
