Peeling away financial reporting issues one layer at a time

Category for Intercorporate investments

“Going Public” is More than a Memoir by an SEC Staffer — Which is Unfortunate

There is more to the securities laws and their administration by the SEC than just the ’33 and ’34 Acts.  The Investment [Read More...]

The Wild West of “Nonauthoritative” GAAP

Two posts ago, I provided two reasons for the PCAOB* to take the opportunity of its auditor’s report project to look closely at the meaning of, “fairly presented … in accordance with [Read More...]

How Deferred Tax Accounting Blunts Government Incentives to Invest in Renewable Energy

One of the items in my inventory of pet peeves when I first started blogging (six years ago!) was interperiod tax allocation, familiarly known as “deferred tax accounting.”  I’ve always objected to it on [Read More...]

The SEC’s “90% Convergence” Fantasy

"…[W]e know there are going to be challenging issues to resolve under any [IFRS] incorporation decision. The issues of LIFO and contingencies immediately come to mind. But even with all of this, [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...]

FASB Could Have Easily Stopped the Repo Accounting Games: They Should Explain Why They Haven’t

On April 19th, FASB Chair Robert Herz submitted a letter to the House Financial Services Committee, explaining the accounting standards that applied to Lehman's repo transactions. In desperate hope that the Committee [Read More...]

A Sampling of What Lurks at the Bottom of the Goodwill Garbage Heap

I have already reported stumbling upon a fascinating interview of Clarence Sampson, SEC Chief Accountant for more than a decade starting in the mid-1970s. Of his many tales of peculiar interactions [Read More...]

SAB 112: Let the New Earnings Game Begin

In a recent post on business combinations accounting that is related to SAB 112, I criticized the FASB for creating yet another loophole in business combinations accounting that make M&A transactions more attractive than they [Read More...]

FAS 141(R): Turning Toxic Loans into Star Performers*

From a story published this Wednesday headlined "Banks Stand to Reap Billions from Purchased Bad Loans," came an account of a jaw-dropping transaction. It was spawned by FAS 141(R), the latest [Read More...]

High Time to Abandon the Accounting for Contingent Liabilities

What the FASB calls “contingent liabilities” in FAS 5, the IASB terms “provisions” in IAS 37. I prefer the IASB’s language, because of its pejorative ring to my American ears: it more clearly connotes [Read More...]