The Financial Accounting Standards Board on Monday rebuffed Federal Reserve Board Chairman Alan Greenspan over suggested changes to a controversial derivatives accounting proposal.

"Your approach-when compared to ours-would reduce the information available to investors and creditors and would not be responsive to the expressed concerns about current recognition and measurement requirements," FASB chairman Edmund L. Jenkins wrote in a Aug. 11 letter.

Last month Mr. Greenspan criticized the FASB plan to require institutions to include derivatives at fair market value on quarterly income statements as expensive, risky, and confusing. As an alternative, he suggested allowing firms to continue reporting historical costs with a supplemental statement listing the fair market value.

Mr. Jenkins suggested the staff of the two agencies meet to discuss the matter. Fed officials on Monday said they received the letter but declined to comment.

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