Another Gift from the Financial Accounting Standards Board
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Submitted by A Dash of Insight
Try this line: “I’m from the Financial Accounting Standards Board and I’m here to help you.”
Not very persuasive? We are not surprised.
Background
FAS 157 is a well-intentioned attempt to clarify derivative accounting and increase transparency. Had it been introduced at a different time, the transition might have been smoother. Instead, the major Wall Street firms adopted the new rules early in 2007, just as the impact of the various mortgage derivative issues was becoming clear. It might have made sense to delay the implementation for a while, but the conspiracy folks were already out in force.
