AbstractFAS 107, the accounting standard that took effect with 1992 annual reports, requires all entities to calculate and disclose the fair value of financial instruments. But its issuance was prompted largely by concern about the financial strength of banks and other financial institutions, and thus, the progress of fair value accounting among banks has been ofparticular interest to both opponents and proponents of fair value accounting concepts.The banks' 1992 annual reports presented data that was later judged to be of little or no value either to the banks or the industry analysts who follow banks. But a more careful study of the 1993 reports should indicate the beginning of an increasing use of fair value concepts and techniques in financial reports, leading to a mixed attribute accounting model that includes both historical cost and fair value measurements. While the progress in this direction is slow, it is discernible.This article draws on extensive studies of FAS 107 conducted by KPMG Peat Marwick among government agencies, bank holding companies, and analysts and investors. The studies were conducted both before the standard took effect and after the first round of annual reports appeared. While these studies demonstrate the large gap between analysts' expectations for new information and the banks' reluctance to provide it, they also provide pertinent clues to the areas in which change is likely to occur.