Banks Offer Mixed Views on ‘Double Count’ Accounting Plan Fix

It was supposed to be a slam-dunk solution to fix persistent complaints that new bank accounting rules artificially deflate the value of merger deals.

Turns out, consensus is more elusive than what US accounting standard-setters envisioned. Banks, accountants, and trade groups offered mixed feedback on the Financial Accounting Standards Board proposal to eliminate the so-called double count of losses required by US credit loss accounting rules. Two of the nation’s four largest banks and US banking regulators outright panned it, comment letters show.

“While the Proposed Update addresses the ‘day-one double count’ for some acquired financial assets, it creates ...