If I may be permitted to say so myself, my principles-based solution for curing repo accounting abuses is the bomb. The off-balance sheet effects of repo accounting could be obliterated by a simple 'gross up' (i.e., separate presentation) of: (1)…
Last November, the FASB issued Proposed Accounting Standards Update 1900-100, Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements: "During the global economic crisis, capital market participants questioned the necessity and usefulness of the collateral maintenance guidance…
The revenue recognition project has become a mess. Even the AICPA was forced to say as much to the FASB, while at the same time knowing that it would likely kill any prospects of IFRS adoption. But, the AICPA's definition…
I predict that 2011 will be a year full of sound and fury, but signifying nothing to advance the cause of high quality financial reporting. You can take it to the bank – by which I mean any one of…
It is said that big surprises come in small packages. Last week's "small package" was a brief article in the AICPA's online edition of its Journal of Accountancy, reporting that its own Financial Reporting Executive Committee (formerly the Accounting Standards…
Whenever I write about valuation or IFRS convergence, I know that an email from Alfred King will be arriving shortly. Alfred has been living and breathing valuation for decades, and he has served on numerous committees of FEI, IMA and…
Some folks can see fine art in a soup can label, or poetry in a user's manual. I don't mean to brag when I state that I have a similar talent. I seem to have a knack for stumbling upon interesting accounting…
To begin this second installment on the boards' (IASB and FASB) Conceptual Framework project, here is a brief summary of my first post. A 'bridge to nowhere' – The boards (FASB and IASB) are planning to construct a new conceptual…
It is my pleasure and privilege to provide you with an original essay from someone else besides yours truly. Michael Pakaluk received his A.B. and Ph.D. in philosophy from Harvard University, and has taught at Clark, Brown and CUA, among…
M. Michel BarnierEuropean Commissioner for Internal Market and Services Re: Green Paper, "Audit Policy: Lessons from the Crisis" Dear M. Barnier: My fellow blogger, Francine McKenna, has recently observed that the negative consequences of "Big Four" dominance of auditing services to…