As pointed out in a recent Accounting Today article, “Study by FASB Member Rebuts FASB Proposed Changes in Fair Value Accounting Standard” (http://www.accountingtoday.com/news/Study-FASB-Member-Rebuts-Changes-Fair-Value-Accounting-66892-1.html?ET=webcpa:e7165:221363a:&st=email), Thomas J. Linsmeier, an FASB Board member, and Kathy Petroni, an accounting professor, have coauthored an academic study that provides evidence that fair value reporting for financial instruments is more informative for investors and potential investors than other accepted approaches for measuring financial instruments.
Dr. Linsmeier and Dr. Petroni’s article will be published in an upcoming issue of The Accounting Review, a well-respected academic accounting publication.
The Accounting Today article also points out that Dr. Linsmeier voted against two recent FASB proposals addressing the recognition and measurement of financial instruments because he argued that the proposed approaches were not as informative as fair value reporting.
The proposals that Dr. Linsmeier opposed address accounting for credit losses on financial assets and recognition and measurement of financial instruments. Both proposals can be obtained from the FASB website (fasb.org).