fair Value Acccounting: IASB v.s FASB - FT

--Standard-setters may offer two at the end of an upcoming two-day London pow-wow. --FASB wants everything at tfair value on teh balance sheeet. Cahgnes in value of certain instrumetns would be recognized in "other comprehensive income" (OCI) and so would not hit profit. --IASB wants instruments to be classified according to their fundametneal characteristics. Instruments wtih stable and predictable cash flow can be accounted for at cost and imparied if necessary. Other instruments must be marked to market. --The diference affect banks regulatory capital. A subordnated bond in a securitzation pool must be amrked to market under IASB proposals, with loss hiting capital. Under FASB probal, tier one capital would be unfacted.