Many oppose FASB proposal for Loan Mark-to-Market

Reuters is reporting that comments regarding an expansion of the Mark-to-Market rules for loans is running heavily against the proposal.  The expansion would impact loans and other financial instruments.

An exceprt from the article:

The banking industry has opposed the measure, saying it does not make sense to assign market prices to loans that will never be sold.

"Thus far, I think the count is up to about 1,500 or so comment letters," said Lawrence Smith, a board member of FASB, which sets U.S. accounting rules. "I think I've read one that supports what we propose."

One of the considerations impacting this proposal is the goal of FASB to achieve convergence with the IASB.  Mark-to-market accounting is one area where the two governing bodies differ.  The IASB has loans valued at amortized cost.