Peeling away financial reporting issues one layer at a time

» FASB/IASB – General

A Much Needed Accounting Lesson for Two Senators

Nothing good comes from bad accounting, and many of the bad things that happen are easy to predict: excess bonuses to management, negative NPV investments, underfunding of pension plans, etcetera, etcetera, etcetera. Yet, the [Read More...]

I’m Not the Only One Dissing the SEC’s IFRS Fixation

Every time I write a post, I might receive a couple of non-spam comments, and perhaps a few more private emails intended for my eyes only. Most of the feedback is positive, and even [Read More...]

“Goodwill Impairment” Accounting Could Become Less Costly – and Earnings Management a Lot Easier

When you start with a bogus asset like goodwill (itself a misnomer), it's hard to find quality in the rules that govern its measurement. The root of the problem is that business combination accounting [Read More...]

ASU 2011-2: The Accounting for Troubled Debt Restructurings Still Leaks Oil

I hand-waxed my 1990 Honda Accord last weekend in celebration of its 21st birthday. Since it still runs like a top, I can take some satisfaction in having 'improved' my car. On the other [Read More...]

There’s No Process Like FASB Due Process

The feedback from my last post, The Myth of FASB Due Process…, was mixed. On the bright side, Edith Orenstein, whose comments inspired my previous post, was flattered to be “venerated,” [Read More...]

The Myth of FASB Due Process: And the Fact of Undue Influence

When the FASB announced last month that it was retreating from its proposal to require fair value measurement of all loans, someone identified by various media outlets as an FASB spokesperson (one Neal [Read More...]

FCIC Gives Accounting Standards a Free Pass (Along with Practically Everybody Else)

Darn few, if anyone who wrote about the Financial Crisis Inquiry Commission's 600-page report has  anything good to say about it. Jonathan Weil at Bloomberg may have described its shortcomings as well as anyone, [Read More...]

The FASB’s Proposed Repo Accounting: Loopholes Still Abound?

Last November, the FASB issued Proposed Accounting Standards Update 1900-100, Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements:

"During the global economic crisis, capital market participants questioned [Read More...]