FASB Project file 1810-10 on Financial Instruments
FASB has published an exposure draft about Fair market value "FMV" and comprehensive income.
It clarifies how FMV could be used for financial instruments valuation and consider that both "FMV" and amortized cost should be used and reconciled.
The project corresponds very closely to our papers available in the "publications" space.
We believe that this project is a big improvement compared with IASB 3 phases project. Nevertheless, we consider that "FMV" valuations and effects on P & L are too sensitive to interest rates and market volatility that are out of the bankers scoope of power to be retained as having an effect on the equity in the books that they would be responsable of or would react with individual policies that will jeopardize the global efficiency of the economy . We would recommend that the links between the amortized costs approach and the "FMV" one be developped in a way that would be organized by banking and monetary surveillance authorities and be ranked in appropriatness.
Comments are expected by September 30th 2010.