Top firms get tough on accounting for losses

Banks blame accounting firms for confusing investors with their
aggressive use of latest accounting rules

The latest changes to US accounting regulations, pushing for
consistency in corporate reporting, have resulted in some accounting
firms interpreting the rules more aggressively than others, which
banks say risks inconsistency and investor confusion.

Following the collapse of US credit markets and subsequent stock
market decline slashing the value of many investments, some publicly
traded companies have accounted for their losses but others still
have
to record their lower market value, Reuters reports.

KPMG has been particularly aggressive, insisting its regional bank
clients write down the lost value of their preferred stock
investments
in Fannie Mae and Freddie Mac, according to Keefe, Bruyette & Woods
bank analyst Samuel Caldwell.

'There has been a large degree of variability in this regard, and it
is often related to the approach of the auditors,' Caldwell
notes. 'In
many cases, certain auditors, such as KPMG, have been more aggressive
at requiring banks to take OTTI marks on such securities.