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,…
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…
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,…
From a MoneyNews.com story published this Wednesday headlined "Banks Stand to Reap Billions from Purchased Bad Loans," came an account of a jaw-dropping transaction. It was spawned by FAS 141(R), the latest and greatest standard on accounting for business combinations:…
The congressional hearings on "market-to-market accounting" are scheduled to begin in a few hours. I shudder at the prospect of financially-illiterate congressmen becoming putty in the hands of savvy lobbyists bearing gifts. My concern was piqued by Steve Forbes' latest…
As I was researching a question for a client a couple of weeks ago, I happened upon a love child of two of my pet peeve accounting standards: FAS 115 (marketable securities) – especially the part permitting available-for-sale (AFS) classification; FAS…
Do you think that stable funding could allow the IASB to divorce itself from the influence of the EU? If so, consider the example the FASB is setting under similar circumstances, and think again. The U.S. standard setter was granted…
This past October, the FASB and IASB issued a joint discussion paper with their preliminary views on financial statement presentation: "[The IASB and FASB initiated the joint project on financial statement presentation to address users' concerns that existing requirements permit…
"The London Symphony played Beethoven last evening, and Beethoven lost." That quotation, which my father attributed to George Bernard Shaw, leapt into my mind as I read Marie Leone's CFO.com report of remarks made by Thomas Jones, vice chairman of…
Although the FASB's record as accounting standard setter is far from spotless, I can't think of a single action taken where the quality of information provided to investors unambiguously diminished. That's what makes the IASB's amendments to IAS 39 so…