Peeling away financial reporting issues one layer at a time

» IFRS/Convergence

Loan Accounting: It’s High Time for the SEC to Step Up to the Plate

“Full convergence with the United States – leading to the creation of one single set of global accounting standards – is no longer an achievable project…   But IFRS moves on – we have [Read More...]

My Safest Prediction for 2014: New Revenue Recognition Rules that Nobody Wants

We have thankfully come to the end of a year in which the gratuitous and repeated attempts by the FASB to converge U.S. GAAP with IFRS have finally devolved from “inevitable” to ignominy. [Read More...]

The Big Revenue Recognition Fizzle

“The new, converged revenue recognition standard will include substantially less industry-specific, “bright-line” guidance than many U.S. companies are accustomed to.” [italics added]

That understatement is brought to you by the Journal of Accountancy.  It’s the [Read More...]

The Financial Accounting Foundation Has Outlived Its Usefulness (As if it Ever Was)

Let’s pretend that we could decide anew how accounting standards for U.S public companies should be promulgated.  Who would want the operations to be run by the Financial Accounting Foundation?  Are there other [Read More...]

The IASB’s Quixotic Attack on Disclosure “Boilerplate”

If the FASB and IASB are doing such a good job mucking up financial statements by working together on convergence projects, why have they decided to go their separate ways in their quests to seek [Read More...]

Do Survey Results Mean that External Audits Don’t Protect Against Earnings Manipulation? (What a Surprise!)

The results of a recent E&Y survey investigating financial manipulation must stun even the most cynical observers of accounting practice,:

Of the board members and senior management surveyed from companies in Europe, Middle East, India [Read More...]

Loan Accounting? The Public Can’t Handle the Truth!

Even if the average citizen might have shrugged with resignation over the Senate’s abandonment of gun control legislation, surely she must be in awe of the power of the NRA to bend democratically-elected [Read More...]

Has Convergence Been a Mixed Bag or a Bag of Fertilizer?

Continuing with my theme of the U.S. GAAP/IFRS convergence misinformation campaign being waged by the Journal of Accountancy, the latest and greatest example is an article from the February edition, “What have IASB [Read More...]

Don’t Rely on “Journal of Accountancy” for Balanced Reporting of IFRS

In the main, the only reason my wife and I subscribe to magazines and newspapers in hardcopy is because she prefers them.  I much prefer to get as much as possible from the web; [Read More...]

The Death and Transfiguration of “Substance Over Form” in U.S. GAAP

Over the years, the notion of accounting for "substance over form" has been trumpeted in IFRS circles as the apotheosis of principles-based accounting. From a practical standpoint, something like it is absolutely necessary for [Read More...]