Peeling away financial reporting issues one layer at a time

» Financial instruments

The Faulty Reasoning of the IASB’s Three-Bucket Loan Loss Model

This is my third consecutive post on the perils of loan loss reserves (first here; second here); and a fourth is going to follow very soon. My fourthcoming (I couldn't resist the [Read More...]

Can Auditors Help Save Spain’s Banks? Nuts!

Less than a day after posting my critique of the FASB and IASB loan loss allowance proposal, I happily learned that the FASB may be backtracking. According to a PwC In Brief:

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It’s Crunch Time for Loan Accounting – and Convergence

Once one chooses to ignore market values and to account for loans on the basis of "amortized cost" – as the IASB has "tentatively" concluded and the FASB may now be starting to question [Read More...]

Getting the Accounting for Derivatives Right — to Get Rid of Financial Regulations and Regulators

This may be a little hard to explain, but my thoughts went to lease accounting after reading Jonathan Weil's Bloomberg piece about the JPMorgan derivatives debacle. And, it happened again after I read [Read More...]

Securitization Accounting and Grand Theft Auto

Many books and articles have been written to describe the mishaps that led to the Great Recession of 2008, but few have done so while putting the role of accounting standards and auditing in [Read More...]

Stock Compensation, Tax Law, Financial Reporting and Facebook’s IPO

Last August, I wrote a post in which I expressed my dismay that Carl Levin (D-Michigan) and Sherrod Brown (D-Ohio) are trying to make tax law based on the premise that FASB rules [Read More...]

Repo Accounting: After Lehman, another Debacle was Just a Matter of Time

Last January, as the FASB proposed closing that 'Lehman loophole' in repo accounting while leaving three other loopy conditions to be met for "sale accounting" intact, I predicted that it would just [Read More...]

IASB Tried to Keep its Greek Bond Letter a Secret – But it Leaked!

Two of my favorite columnists, Floyd Norris and Jonathan Weil have put in their two cents worth on the implications of the Greek bond accounting issues brought to the fore by the [Read More...]

Peeling the Onion on the Accounting for Greek Bonds

Yesterday, Han Hoogervorst, the IASB chair, sent a letter to the European Securities and Markets Authority (ESMA), in which he expressed concern for the pie-in-the-sky numbers produced by EU banks on their Greek [Read More...]

A Brief Exchange with an IASB Member on Hedge Accounting

A reader of my post on the CFA Institute's critique of the IASB's hedge accounting exposure draft suggested that I write to the two members of [Read More...]