Ten Reasons Against Mark-to-Market for Loans – and the Reasons Why They are Wrong (Part 2 of 2)
Continuing my previous post, here's reasons 6 – 10 with my responses. 6. There are also hedge accounting considerations. Paragraph 79 of IAS 39 does not allow interest rate risk hedge accounting for HTM securities. Paragraph 21(d) of FAS 133…
Ten Arguments Against Mark-to-Market for Loans – and 10 Reasons Why They’re Wrong (Part 1 of 2)
In my previous post, I argued that the FASB should require accounting for investments in loans at inflation-adjusted replacement cost. I have not been flooded with reactions from readers, but I did ignite a lively discussion on the AECM listserv,…
FASB Could Finally Get Loan Accounting Right – Well, Less Wrong
One of the most positive financial reporting policy developments in a long time is the FASB's announcement, about a month ago, of its intent to require fair value accounting for nearly all financial instruments. An exposure draft is supposed to…
Emergency Post: Chief Accountant Candidates Could be Down to Just Two
My practice has been to post about once per week, and I had completed my latest less than a day ago. I'm coming back at you so quickly, because Bloomberg News has just come out with this: "Securities and Exchange…
Which SEC Roadmap Comments Matter, and What They are Saying
A couple of commenters on the last post found fault with my assertion that the "low" response from issuers on the SEC's IFRS Roadmap proposal is pretty much a non-issue. For example, commenter Andy argues that self-selection bias may well exist…
The Comments on the SEC Roadmap are Clear: Make a U-Turn
There are some definite signs that Mary Schapiro is getting closer to naming her Chief Accountant. For example, I received an email from Denny Beresford, former FASB chair, who was left with the impression from a reporter that an announcement would be…
Spinning “Convergence”
"Converge" from Merriam-Webster's Online Dictionary: to tend or move toward one point or another: come together: meet to come together and unite in a common interest or focus to approach a limit as the number of terms increases without limit…
Regulate Derivatives? Start with Better Accounting!
I can usually find enough time to write only one post each week. Consequently, much of what I considered to be high-quality fodder is washed away by the exigencies of my real work. This week, however, had too many interesting news items,…