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Prepayment risk project killed.

The Financial Accounting Standards Board removed from its technical agenda a project on investments with prepayment risk. The board had issued an exposure draft, Accounting for Investments with Prepayment Risk, in September 1991 and was expected to issue a final statement by year end.

FASB Chairman Dennis R. Beresford said, after considering the comments on its ED and receiving advice from Financial Instruments Task Force members, the FASB first narrowed the scope of a possible statement and then decided improvements in financial reporting expected from the narrowed scope would not be sufficient to justify requiring a change. As a result, the board decided not to issue a final statement or to continue considering the limited-scope project on prepayments.

Beresford said many of the key issues involved in the prepayment project would be addressed through the FASB's broader agenda project on market-value-based measurements.
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Title Annotation:FASB
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Oct 1, 1992
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