FASB issues proposal on financial guarantee insurance contracts.

• Position: Accounting & auditing news

The Financial Accounting Standards Board recently issued a proposal to improve the accounting for financial guarantee insurance contracts. According to the FASB, the proposal, Accounting for Financial Guarantee Insurance Contracts, an Interpretation of FASB Statement No. 60, reduces diversity in practice and provides financial statement users with clearer, more comparable information and expanded disclosures.

In keeping with the FASB's mission to help reduce complexity in the financial reporting system, the proposal was written in a new format intended to improve its...