The Financial Accounting Standards Board’s high-speed effort to rewrite the accounting rules for impaired assets will take the shape of four quick projects, modifying three existing rules and calling for more disclosures via a fourth new rule.
FASB is racing to complete the revisions in time to be effective for year-end 2008 financial reporting, but isn’t entirely sure the revisions will help thaw the frozen credit markets. Even FASB Chairman Robert Herz, speaking at a Board meeting last week, voiced reservations about the planned new guidance.
Herz
“I think all this impairment stuff is voodoo,” he said. “I see a lot ...