The Financial Accounting Standards Board reissued its controversial derivatives proposal Tuesday.

The standards board said it would accept comments through Oct. 14 on the plan, which would require companies to report derivatives at fair market value on quarterly income statements. However, FASB is not expected to make fundamental changes to the proposal before adopting it at yearend.

"FASB is issuing this for a 'fatal flaws' review," said Marti Sworobuk, president of Financial Standards Inc. "They are only looking for circumstances in which the standard just wouldn't work."

The standards board issued the plan for a more substantial comment period in June 1996.

Banks and other companies that use derivatives have complained that the accounting rule would distort earnings. However, FASB Chairman Edmund L. Jenkins repeatedly has said it would give investors important information and that the rule would take effect by Jan. 1, 1999.

The 136-page proposal can be downloaded from the board's Web site at www.fasb.org. A printed version may be obtained by calling (203) 847-0700, extension 555. Comments may be filed by mail or sent via E-mail to director fasb.org.

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