Peeling away financial reporting issues one layer at a time

» Accounting Concepts and Conceptual Framework

Revised IAS 1: A Balance Sheet By Any Other Name …

The International Accounting Standards Board on September 6 issued a revised version of IAS 1, which for the most part tweaks the presentation of financial statements to get them looking a little more like [Read More...]

FAS 158: Funded Status is Padded with Company Shares

FAS 158 makes it look like the 'funded status' of defined benefit  post-employment benefit plans are now transparent.  Actually, they are not.  To see why, consider the following three transactions:

Company A purchased 500 shares [Read More...]

EITF 07-1: Can a Good Accounting Rule Drive Out a Bad One?

It seems that business practice tends toward greater exploitation of opportunities for collaboration over time.  On a personal note, it has been said that [Read More...]

How to Prevent Your Auditor from Telling the World You’re in Deep Doo-Doo

Jonathan Weil, the accounting and corporate finance columnist for Bloomberg News, has written an excellent column (read it!) on auditors failing to provide going concern qualifications in reports when they are clearly [Read More...]

FAS 52: Adding Apples and Rocks

FAS 52 on foreign currency translation took effect in 1982 after one of those infamous 4 – 3 votes.  Like other accounting rules promulgated by the FASB, it is nonsense, for the sole purpose [Read More...]

AS 5: The Illegitimate Child of FAS 5

This is a rather long post, for which I apologize in advance.  It is an adaptation of a much more diplomatic comment letter that I wrote to the PCAOB, criticizing its proposed, and [Read More...]

Can the Devil in the Details of GAAP be Exorcised?

Rule complexity is not solely the province of accounting in the world of business.  Just trying to list the others–taxes, securities, labor, environmental, trade, etc.–boggles my mind.  But, I do know that accounting rules [Read More...]