While the Office of Federal Housing Enterprise Oversight takes an up-close look at Fannie Maes use of derivatives (see story Page 1), Fannie is also examining the instruments and has made recommendations on a proposed accounting rule that would alter the way institutions provide disclosures for them.

The Financial Accounting Standards Board released an exposure draft April 14 that made slight alterations to FAS 107, Disclosure about Fair Value of Financial Instruments, and also made additions to FAS 105, Disclosures of Information about Financial Instruments with Off- Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk. The comment period for the proposal ended July 1, and, if approved, could become effective Dec. 15, 1994.

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