from Bloomberg
FASB VOTES TO DELAY DERIVATIVES STANDARD
5/19/99 9:24
Business Editors
NORWALK, Conn.--(BUSINESS WIRE)--May 19, 1999--Citing concerns
about companies' ability to modify their information systems and
educate their managers in time to apply its new derivatives and
hedging standard, members of the Financial Accounting Standards Board
today voted to delay its effective date for one year, to fiscal years
beginning after June 15, 2000. The new standard, Statement 133 issued
in June 1998, applies to quarterly and annual financial statements.
FASB Chairman Edmund L. Jenkins explains, "We have received a
number of requests from constituents asking for a one-year delay,
based on unforeseen problems with getting systems up to speed for year
2000 considerations. Others had questions about applying Statement 133
in practice and the need to educate their people internally about the
new standard's requirements.
"The Board continues to believe that investors must have the kind
of information that will be provided under Statement 133--information
that, for the most part, has never been available to investors
before," Mr. Jenkins continued. "But we also must be responsive to the
companies that will be supplying that information to ensure that the
standards are implemented consistently and in a manner that is the
most complete and the most useful to investors."
The Board will publish a formal proposal to delay for public
comment this week, with comments requested by June 19.
--30--bk/ny*
CONTACT: FASB, Norwalk
Media Contact: Deborah Harrington
203/847-0700, ext. 268
KEYWORD: CONNECTICUT
INDUSTRY KEYWORD: BANKING
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