Recent proposals by the Financial Accounting Standards Board (FASB) give holders of illiquid assets more flexibility in disclosing their fair values but also establish stricter guidelines for how to achieve those values, likely resulting in greater operational burdens and a step back on the road toward fair value accounting.

Technically FASB staff positions (FSPs), one proposal would affect disclosures by amending two existing accounting statements and an Emerging Issues Task Force (EITF) issue. Only credit-related losses would be reported in earnings, while losses related to other factors would appear in other comprehensive income.

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