FASB issues proposal on fair value reporting options.

• Position: Accounting & auditing news

The Financial Accounting Standards Board has issued an exposure draft that would provide companies with the option to report selected financial assets and liabilities at fair value. Under the option, any changes in fair value would be included in earnings. The proposed standard seeks to reduce both complexity in accounting and volatility in earnings caused by differences in the existing accounting rules.

Under this proposal, entities would be able to measure at fair value financial assets and liabilities selected on a contract-by-contract basis. They would be required to display those values...