Accounting Standard-Setter Seeks Input on Debt Exchanges Plan

The US accounting standard-setter is asking the public for input on its effort to improve financial reporting guidance for debt exchange transactions that involve multiple creditors.

The Financial Accounting Standards Board released a draft plan Wednesday to make financial reporting information more useful to investors by requiring similar methods of accounting for exchanges of debt instruments that are economically comparable. The move comes at the recommendation of the board’s Emerging Issues Task Force, which works to quickly tackle relevant accounting matters.

• FASB’s plan would specify that the debtor should account for an exchange of debt instruments meeting certain ...