The impact of SFAS133 on income smoothing by banks through loan loss provisions


We examine the impact of SFAS 133, Accounting for Derivative Instruments and Hedging Activities, on the reporting behavior of commercial banks and the informativeness of their financial statements. We argue that because the stricter recognition and classification requirements of SFAS 133 reduced banks' ability to smooth income through derivatives, banks… (More)


5 Figures and Tables

Slides referencing similar topics