The Financial Accounting Standards Board (FASB) in the U.S has relaxed fair value accounting rules for bank assets in a move that allows them to ignore market prices where the market for those assets is judged to be illiquid or distressed.
In a bid to reduce pressure on banks carrying toxic assets on their balance sheets, the Financial Accounting Services Board also voted to allow banks to book smaller losses on impaired assets that are listed for sale. For further details on the FASB ruling click here.