Oct. 17 (Bloomberg) -- Canadian banks will get more flexibility to postpone losses on assets that are hard to sell and value amid a freeze in global credit markets, the National Post reported.

In a ruling to be circulated today, Canada's accounting watchdog, the Accounting Standards Board, will loosen the so- called mark-to-market valuations that require banks and financial institutions to price assets at current market values, the Post said, citing people familiar with the process.

The new ruling will give the banks some relief as they prepare for end-of-year results, which may show a broad decline in profits, the Post said. The banks' fiscal year ends Oct. 31.

The revaluations may result in significant gains for the banks, resulting in a ``substantial income boost,'' Roger Siefert, a managing director of forensic accounting at LECG Corp. in New York told the Post.

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To contact the reporter on this story: Joe Schneider in Toronto at jschneider5@bloomberg.net.

Last Updated: October 17, 2008 07:47 EDT