FASB-MAI

"Accounting-rule makers will delay by a year proposed changes that could force banks and other financial firms to take onto their books certain off-balance-sheet vehicles that played a central role in the credit crunch. ... Following calls from companies and legislators that companies needed more time, the [FASB] on Wednesday agreed to make the changes for both new and existing structures effective in 2010. If adopted, the rule changes could have a signifcant impact. Citigroup Inc. alone has more than $700 billion in assets in vehicles that it may have to bring back onto its books under the changes", Matthew Cowley and David Reilly at the WSJ, 31 July 2008.

The FASB is gutless. The supposed changes are unnecessary. The problem is: failure to properly apply the existing rules and the PCAOB's unwillingness to discipline the Big 87654 firms which audit big banks. The existing rules are fine. See my 15 December 2007 and 6 February 2008 posts.