Relative to the big changes that are supposed to be coming from the FASB (leases, revenue recognition, loan impairment), ASU No. 2015-03 on debt issuance costs is very small potatoes. But, if you are looking for an exemplar of the verbal…
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…
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,…
Following my most recent post on financial statement presentation, Eddie Thomas, a frequent commenter of this blog, wrote: "Wouldn't investors be better off pushing for a more robust XBRL so that they can make their own decisions about what is…
Two readers, including Robert Bloomfield, Cornell accounting professor (my alma mater!) and Director of the Financial Accounting Standards Research Initiative (FASRI) of the FASB, were kind enough to point out an error in my previous post. Here is the gist…
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…
APB 14 was promulgated in 1969 when we were still pretty much in the dark ages with respect to the valuation of derivative financial instruments. The Opinion addressed two issues, one of them being the accounting for convertible debt. Since…
In Finance 101 it is taught that the decision to acquire assets involves two steps. First, you figure out which assets you want to acquire (capital budgeting), and second, you figure out how to pay for them (capital structure). If…