ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release January 8, 2003 #03-01
E-mail: [email protected]

ACB URGES FASB TO CONSIDER PRINCIPLES-BASED ACCOUNTING A LONG-TERM PROJECT

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WASHINGTON, D.C. — America’s Community Bankers has urged the Financial Accounting Standards Board to consider adoption of a principles-based accounting framework as a long-term project. “There are numerous practical issues that raise concerns and need to be addressed before adoption,” ACB said in a comment letter.

“Rather than immediately embracing a new principles-based framework, ACB urges FASB to retain and improve the current system and recognize that a substantial transition period would be required should FASB move to a more principles-based standards-setting framework,” ACB said.

ACB said urged retaining substantial guidance and interpretation to help users and preparers of financial statements. “ACB is concerned that minimal guidance will place smaller enterprises, including community banks with limited resources, at a disadvantage in applying standards in a principles-based regime.”

ACB said it agreed with remarks made by FASB Chairman Robert Herz to a group of ACB members that a persuasive case for adoption of a principles-based system should occur only after thorough consideration of all issues and after concerns of the parties are discussed.

The comment letter is attached.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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