Reply #110: FASB rules changes may be too little, too late for some

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http://financialweek.com/apps/pbcs.dll/article?AID=/20080916/REG/809159955/1036
Fiddles to FAS 133 aimed at providing greater disclosure of credit default swaps

Wall Street may be in a state of shock over the weekend’s events. But for the Financial Accounting Standards Board, it’s business as usual.

“We’re continuing with ongoing projects,” Christina Klimek, communications manager at FASB, told Financial Week Monday. She added that there are “no special new projects because of what happened over the weekend.”

FASB was already working on issues that very much relate to the current crisis on Wall Street. For instance, on Friday the board released amendments to FAS 133 regarding accounting for credit derivative instruments and hedging activities. That change will require greater financial disclosure from sellers of credit default swaps for reporting periods ending after Nov. 15.

Although the move will benefit investors once the amendments take effect, it appears to be too little, too late for parties to CDS trades with Lehman Brothers.