U.S. FASB proposes more leeway on mark-to-market

WASHINGTON, March 16 (Reuters) - The Financial Accounting Standards Board, which sets U.S. accounting rules, on Monday proposed allowing companies to exercise more judgment in determining if a market for an asset is active and if a transaction is "distressed."

FASB put the proposals out for comment, with the hope of having the mark-to-market accounting guidance approved in time for companies to use it when preparing their first-quarter financial reports.

Board members said the guidance could help boost fair values, or mark-to-market values, and get investors more interested in U.S. banks. (Reporting by Karey Wutkowski; editing by John Wallace)