FASB set to vote again on mark-to-market plan. (Financial Accounting Standard Board)

National Underwriter Life & Health-Financial Services Edition, April, 1993 by Crosson, Cynthia

The Financial Accounting Standards Board (FASB) has scheduled a vote on a regulation that would require insurance companies to value their securities at market value, the so called mark-to-market plan. The fair market valuation would replace traditional amortized accounting basis used by the industry. The proposed regulation is opposed by the insurance industry on the grounds that it will cause financial statements to be skewed. The industry also questions the fairness of requiring assets to be accounted for at fair market value but not liabilities. However, a Salomon Brothers report reveals that insurers increasingly are using fair market formula to value their assets.

The Financial Accounting Standards Board will find out tomorrow if it has enough votes to get its...

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