In Brief: FASB Derivatives Accounting Rule Hit

Six industry trade groups urged Congress Thursday to review a controversial plan by the Financial Accounting Standards Board to require companies to include derivatives on their quarterly income statements.

"Although we support keeping accounting standard setting in the private sector, we strongly encourage congressional hearings in order to examine the process and the concerns raised," they said.

The letter was signed by the American Bankers Association, the ABA Securities Association, America's Community Bankers, the International Swaps & Derivatives Association, the New York Clearing House Association, and the Treasury Management Association.

FASB wants to require banks to record derivatives at their fair-market value. Banks would prefer to record the instruments at their historical cost and then include their fair-market price in footnotes.