Peeling away financial reporting issues one layer at a time

» Business combinations

A Sampling of What Lurks at the Bottom of the Goodwill Garbage Heap

I have already reported stumbling upon a fascinating interview of Clarence Sampson, SEC Chief Accountant for more than a decade starting in the mid-1970s. Of his many tales of peculiar interactions [Read More...]

Spinning “Convergence”

"Converge" from Merriam-Webster's Online Dictionary:

to tend or move toward one point or another: come together: meet

to come together and unite in a common interest or focus

to approach a limit as [Read More...]

SAB 112: Let the New Earnings Game Begin

In a recent post on business combinations accounting that is related to SAB 112, I criticized the FASB for creating yet another loophole in business combinations accounting that make M&A transactions more attractive than they [Read More...]

FAS 141(R): Turning Toxic Loans into Star Performers*

From a story published this Wednesday headlined "Banks Stand to Reap Billions from Purchased Bad Loans," came an account of a jaw-dropping transaction. It was spawned by FAS 141(R), the latest [Read More...]

High Time to Abandon the Accounting for Contingent Liabilities

What the FASB calls “contingent liabilities” in FAS 5, the IASB terms “provisions” in IAS 37. I prefer the IASB’s language, because of its pejorative ring to my American ears: it more clearly connotes [Read More...]

Compromising Accounting Principles: A History Lesson (and a Mea Culpa)

(I apologize to anyone who has read an earlier version of this post. Due to a problem with my blogging software, it was not sent out to subscribers. Therefore, I am re-posting it.)

First, [Read More...]

The Revisions to IFRS 3: Bad Enough to Abandon Faith in IFRS?

In my previous post, I described how an SEC honcho, while speaking to the choir at an event sponsored by FEI, espoused his version of faith-based accounting; though he could not provide a single, solid [Read More...]

Peeling the Onion on the New Business Combination Standards: FAS 141R and FAS 160

This post examines the onion skin, if you will, of the new business combination standards. I'm going to explain the differences between the so-called 'purchase' method of accounting and the new 'acquisition' method. As [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...]