Peeling away financial reporting issues one layer at a time

Category for Foreign Operations

GAAP and the Federal Budget Deficit

The accounting topic of the season is income taxes.  But, as the nation contemplates what Congress could end up passing, I want to talk about how one under-the-radar amendment to financial accounting standards has [Read More...]

More Not to Like about Deferred Taxes: The Foreign Earnings Loophole

A seasoned accountant and regular reader of my blog wrote that, until my last post, he had seen little discussion of the potential to manage the effective tax rate upwards. He has, however, [Read More...]

How Accounting Standards Went Insane: It Didn’t Start with IFRS Convergence

If you subscribe to The Atlantic magazine, the title of this post may ring a bell — a riff on  “How American Politics Went Insane: It Didn’t Start with Donald Trump…”  from the July/August edition.  Now that [Read More...]

Ten Claims in Support of IFRS Adoption by the SEC – and Why They are False (Part Two of Three)

Click here for Part One of this Three-Part Series.

* * * * *

False Claim #2: A move to IFRS would restore the public trust in accounting standards.

I'm [Read More...]

India’s IFRS Carve-Outs and the Pipedream of Global Accounting Standards

It seems that I was not the first to report that IFRS adoption in India could be on the rocks. Compliance Week editor Matt Kelly posted a link to their short blurb [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...]

Making Financial Statement Presentation Simple: Mandate Account Reconciliations

Following my most recent post on financial statement presentation, Eddie Thomas, a frequent commenter of this blog, wrote: "Wouldn't investors be better off pushing for a more robust XBRL so that they can [Read More...]

FAS 52: Another Goodwill Charade, and IFRS Convergence To Boot

In a recent post, I argued that goodwill arising from a business combination was just a random number; therefore, any attempt to measure impairment amounted to nothing more than a costly charade.  By [Read More...]

FAS 52: Forex Gains and Losses from Holding Dollars?

I noticed that 'FAS 52' has been the most popular search term leading web wayfarers to seek inner peace from the Accounting Onion (click here for my earlier FAS 52 post).  I play [Read More...]