The SEC’s Fair Value Roundtable: No Fireworks
On July 9, 2008, in Washington, DC, the SEC hosted a roundtable "to facilitate an open discussion of the benefits and potential challenges associated with existing fair value accounting and auditing standards." The roundtable was webcast and lasted about four…
The Fairy Tale of ‘True and Fair View’ and a Modest Proposal for Real ‘Core Principles’
I had a pleasant back and forth correspondence with one my readers a few weeks ago. Carlomagno, as he called himself (I don't know his true identity), is a proponent of IFRS; and like me, he is of the opinion…
SFAS 157: ‘Fair Value’ is Not Fair Measurement for Illiquid Assets
I am finally ready to contribute my two cents to the debate as to whether SFAS 157 is at least partly responsible for the subprime mortgage mess. I have pointed out in other contexts (here and here) the serious shortcoming…
Compromising Accounting Principles: A History Lesson (and a Mea Culpa)
(I apologize to anyone who has read an earlier version of this post. Due to a problem with my blogging software, it was not sent out to subscribers. Therefore, I am re-posting it.) First, the Mea Culpa Over the year…
Toward a New Big Eight: A Deal The Big Fours Can’t Refuse
Jim Peterson, who blogs on the auditing profession, has written an excellent summary and analysis of the failure of the U.S. Treasury's Advisory Committee on the Audit Profession to recommend a solution to the Big Fours' exposure to liabilities threatening their solvency.…
The Revisions to IFRS 3: Bad Enough to Abandon Faith in IFRS?
In my previous post, I described how an SEC honcho, while speaking to the choir at an event sponsored by FEI, espoused his version of faith-based accounting; though he could not provide a single, solid reason to explain why the U.S.…
Accounting Convergence: Deconstructing the SEC’s Message
John White, Director of the SECs Division of Corporation Finance, gave a speech at Financial Executives International Global Financial Reporting Convergence Conference last week (June 5, 2008). In no uncertain terms (and with apologies in advance for the bad pun),…
XBRL at the SEC: Investors Want More Data To Go With the Better Formatting
On May 14, 2008, the SEC voted to propose its long-awaited XBRL rule, requiring companies to provide the information contained in financial statements, notes and accompanying schedules in a format amenable to interactive search and analysis. The XBRL data tag information would…