The London-based International Accounting Standards Committee has rejected a plan to require banks and other companies to report market value changes of all derivatives contracts quarterly.

The plan, which has been proposed for use in the U.S. by the Financial Accounting Standards Board, has been widely criticized by bankers and other industry officials here. Critics claim FASB's plan would create a false picture a company's performance because most derivatives are held until maturity as a hedge against interest rate and market risk.

The international standards committee said Tuesday, after meeting over the weekend, that more debate on FASB's plan is necessary.

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