The Financial Accounting Standards Board came under criticism on Capitol Hill again this week as the House Commerce, Trade and Consumer Protection Subcommittee focused in on the accounting turmoil at Freddie Mac – the Congressionally chartered mortgage financing company that expects to restate up to $4.5 billion in earnings due in part to faulty derivatives accounting.

Noting that FASB’s current standard for accounting for derivative instruments and hedging activities is nearly 800 pages long, subcommittee chairman Cliff Stearns, R-Fla., charged that the overly complex rule produces “different results from company to company, undermining an investors ability to make informed decisions based on comparisons of those companies’ financial statements.”

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