“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 Company Act of 1940 focuses on disclosures by mutual funds and similar entities; and the Investment Advisers Act…
Double-Entry Accounting in Modern Times
My Shareholder Oriented Financial Accounting (S-OFA) Standards will require that debits equal credits. Duh. But if I am truly going to start with a clean sheet of paper, then I am compelled to explain how double-entry accounting serves a purpose. I see three…
Non-Voting Shares are in Vogue: Do (Lousy) Accounting Rules Play a Part?
I’m starting a company and I want you to invest. I will put up $100 of my money for $10 million of yours. I will own 100 shares of voting stock, and you will own 10 million shares of non-voting…
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 somewhat more challenging to think about recognition…
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 securities laws by failing to record an…
Introducing ‘Shareholder-Oriented Financial Accounting’
Last December, I announced that I have started to write a book that would propose a very different basis for financial accounting by public companies. I’m calling it ‘Shareholder-Oriented Financial Accounting’ (S-OFA), and this is the opening paragraph I have in mind:…
Revenue by (Logical) Deduction
It seems there is always good reason to write a post about revenue recognition. I can even envisage an entire blog on the FASB’s new standard (ASC 606). It could go on for years without running out of fresh material. That…
Could Wells Fargo be the Next Big MD&A Enforcement Action?
The question occurred to me after reading Francine McKenna’s coverage of Senate hearing testimony by Wells Fargo’s CEO about the nearly 2 million unauthorized credit card and savings account openings. I don’t know if the SEC is building an enforcement action against…