Peeling away financial reporting issues one layer at a time

Category for Long-lived assets

The Asset Impairment Song and Dance (Part 2 of 2)

My latest post was about general problems with asset “impairment” accounting —  its absurdity, high cost and dubious information value.  And I haven’t even begun to hone in on the wurst part: goodwill impairment.

It is [Read More...]

The Asset “Impairment“ Song and Dance (Part 1 of 2)

Two recent news items have made this an opportune time for a post — actually, two posts —  about the accounting for the “impairment” of an asset.

The SEC is considering whether Exxon violated the [Read More...]

The Double Illusion of Financial Statement Comparability and Auditability: Through the Lens of Falling O&G Prices

My inspirations for this post are the maiden speech of the SEC’s new chief accountant James Schnurr, and the joy of paying only $2.02/gallon at the pump.

As for Mr. Schnurr, I plan to [Read More...]

FAS 144: Tailor-Made to Confound Financial Analysts

It should come as no great surprise to savvy analysts that far too many accounting standards were written to benefit someone else other than investors and analysts. FAS 144 on impairment of long-lived asset [Read More...]