Financial firms may be the ones combating the Financial Accounting Standards Board to derail a rule that would require more use of fair-value accounting for derivatives and similar instruments, but many others in Corporate America are cheering them on—fearful that provisions of the rule could lead to more valuation homework, more judgment about items on the balance sheet, and more earnings volatility.
FASB has already received more than 300 letters about its proposal, most of them from financial firms panning the idea. The correspondence comes ahead of an October roundtable on the proposed rule, which would require fair-value accounting for all ...