Rulemakers Seek Fresh Ideas to Simplify Derivatives Accounting

The US accounting standard-setter told its staff to fine-tune a proposal that would expand exceptions to complex derivatives accounting rules.

Members of the Financial Accounting Standards Board recommended at a Wednesday meeting that staff address stakeholder concerns about the potential for diverse interpretations of the plan.

Companies involved in common business transactions can get swept into complex rules designed for options, warrants, swaps, and other derivatives.

FASB’s draft plan, released last July, would broaden what the board calls the “scope exception,” meaning transactions that qualify won’t have to make fair value calculations every period.

Specifically, FASB’s proposal excludes from ...