I received a David Zion, Amit Varshney, and Chris Cornett report earlier today (Credit Suisse). They say, among other things, that the FASB just held its first board meeting to discuss overhauling the accounting for financial instruments.

They claim that although there’s still a long way to go, it looks like the FASB could be making some pretty radical changes. Tentatively, the FASB has decided that all financial instruments (assets and liabilities) should be reported on the balance sheet at fair value, with only a few possible exceptions (e.g. deposits). In fact, under the FASB’s plan the balance sheet would show both the amortized cost and fair value amounts. (That way, you can use whichever measurement you prefer.) Stay tuned for more details (and there are more details)…..