Pharma, Litigation Funders Seek Derivatives Accounting Clarity

Firms that fund drug research and an international development lender urged the US accounting standard setter to draw a sharper distinction between complex derivatives and certain common financing arrangements.

US companies and accounting firms generally support a July proposal that would winnow the list of business transactions that must follow rules intended for interest rate swaps, options and other types of derivatives, according to letters submitted to the Financial Accounting Standards Board. The project would broaden exceptions to the complex accounting with targeted relief for litigation funding and financing for research and development.

Comments were due earlier this week ...