The new exposure draft on accounting for impaired loans recently issued by the Financial Accounting Standards Board does not ease the concerns of bankers who would be required to make dramatic changes in their balance sheets.
"This is a real sleeper of an issue," said Donna Fisher, manager of accounting for the American Bankers Association. She explained that she doesn't think FASB fully appreciates the difficulties that will be faced by banks and other lenders, despite the efforts of ABA members to explain them to FASB members in March. "This seems to be a very mechanical approach on the part of FASB," she said. "It also implies a level of precision in accounting for loan losses that doesn't exist."