The U.S. Chamber of Commerce has attacked the Financial Accounting Standards Board's derivatives proposal.

The group, which represents more than three million businesses nationwide, also endorsed legislation introduced by Rep. Richard Baker, R- La., that would require the Securities and Exchange Commission to approve any FASB proposal after soliciting public comment.

FASB's new derivatives accounting standard would require companies to report derivatives at fair market value on quarterly income statements. Bankers and regulators have argued that the change would mislead investors and discourage institutions from using derivatives to hedge risks.

"The proposal could adversely affect the international competitiveness of U.S. businesses in the global marketplace," wrote R. Bruce Josten, the chamber's executive vice president for government affairs in a Feb. 13 letter to FASB.

The letter was released last week by Rep. Baker's office.

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