After seven years of debate and 140 public hearings, the Financial Accounting Standards Board said Monday that it will require companies to report the market value of derivatives on financial statements.

Banks and investment firms that sell and use the financial contracts have protested that the rule would distort earnings statements. But FASB, announcing the rule at a press briefing, said that without it, U.S. companies could hide derivatives losses, causing investors to lose confidence in the market and precipitating crises similar to those in Indonesia and Thailand.

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