The Financial Accounting Standards Board has been working for decades on accounting for financial instruments. While the urgency associated with the topic has waxed and waned, it has never completely dropped off the agenda. Of course, the financial crisis has pushed it to the forefront again.
A May 2010 FASB proposal would have required virtually all financial instruments to be carried at fair value. This would have provided a common measurement characteristic for financial instruments and could have solved many problems while significantly reducing complexity. As everybody knows, FASB has since changed its course. Many observers have criticized FASB for ...