Market-value accounting could have been worse. (Financial Accounting Standards Board requirement that banks value some securities at current market prices) (Brief Article)

ABA Banking Journal, June, 1993 by Cleland, George

Accountants aren't known for their sense of humor. As one CEO put it, "I don't generally like to hear laughter coming from my accounting department."

Bankers aren't laughing much, either, after the Financial Accounting Standards Board decided in April to require banks to value certain securities at current market prices.

"This is more than just an accounting change," said Donald G. Ogilvie, ABA's executive vice-president. "It will change the way banks conduct their business and the fundamental role they play in the economy."

A partial victory. Market-value accounting was a long time coming. ABA supported and worked for changes that eventually made the rule more workable. The association supported a change, for example, that will allow...

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