This sounds like a winning plan.

[unixronin]

...NOT.

WASHINGTON—The board that sets U.S. accounting standards on Thursday gave companies more leeway in valuing assets and reporting losses.  The changes should help boost battered banks’ balance sheets and financial stocks rallied on Wall Street, but the rules may undercut a new financial rescue program.

Here’s the meat:

The FASB issued new guidelines under the so-called mark-to-market accounting rules, which require companies to value assets at prices reflecting current market conditions.  The changes, which apply to the second quarter that began this month, will allow the assets to be valued at what the banks project they might sell for in the future, rather than in the current, distressed environment.

Waitaminnit.  This allows banks to make up what they think an asset “ought to be” worth.  Isn’t that exactly the kind of voodoo-accounting shenanigans that got us INTO this mess in the first place?

(Pointer via bratling, in another venue)

Comments

[lebo-superman.livejournal.com]

LOL!