Peeling away financial reporting issues one layer at a time

Category for EITF

Classification of Debt Prepayment Costs in the Statement of Cash Flows: What was the EITF Thinking?

I have been teaching undergraduate “Accounting Theory” for the past three years.  For reasons that I will explain below, I choose to begin the course by exploring differences between accrual accounting and cash flows; and relatedly, [Read More...]

Proposed ASU No. EITF100D – Helping Big Pharma Score Bullseyes on Its Earnings Targets

A couple of weeks ago, I concocted a cautionary tale for undergraduate students out of Proposed ASU No. EITF100F, which dealt [Read More...]

Proposed ASU No. EITF100F: Health Care Entities Can Choose Their Poison

If you are teaching an accounting class, here's a simple and timely (I'll explain why, later) assignment for your students:

Facts: Company XYZ is a manufacturer that is being sued by a person claiming [Read More...]

ASU 2010-19: When a Dollar of Cash Is More Than a Dollar on the Balance Sheet

If you think you can find a larger wart on the backside of US GAAP than the one I am about to describe, then give it your best shot.

Here it is in a [Read More...]

EITF 96-15: Godzilla and Frankenstein’s Love Child

As I was researching a question for a client a couple of weeks ago, I happened upon a love child of two of my pet peeve accounting standards:

FAS 115 (marketable securities) – especially the [Read More...]

FSP APB 14-a: How Long Should it Take to Close a Loophole the Size of Arthur Andersen?

APB 14 was promulgated in 1969 when we were still pretty much in the dark ages with respect to the valuation of derivative financial instruments.  The Opinion addressed two issues, one of them being [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...]