Tom I'm [Osman Sattar,] a relatively new reader to your blog and I understand that you favour market values in accounting. In this article, you say that: (1) "[B]oth models [the current incurred loss model and the proposed CECL model]…
In response to my previous post, Edith Orenstein (author of the FEI blog and fellow Ohio State alum) asked me whether I preferred the status quo "incurred," or the proposed "expected" loan loss model (CECL). Also in that post, I…
At its August 22nd meeting, the FASB came to some significant tentative conclusions regarding the recognition and measurement of loans: "The Board decided that the model [of loan loss measurement] should utilize a measurement objective of "expected credit losses" and…
No one will ever say that U.S. GAAP revenue recognition standards are consistently principles-based, but few would say the system needs to be completely overhauled. Other than to achieve convergence of U.S. GAAP and IFRS, what will a new revenue…
[This is my fourth consecutive post on loan accounting. Here are the first, second and third.] I love finding accounting lessons buried in stories that on their surface seem to have little to do with accounting. See, for example, my…
This is my third consecutive post on the perils of loan loss reserves (first here; second here); and a fourth is going to follow very soon. My fourthcoming (I couldn't resist the pun J) post will be based on recent…
Less than a day after posting my critique of the FASB and IASB loan loss allowance proposal, I happily learned that the FASB may be backtracking. According to a PwC In Brief: "After considering the results of outreach efforts and…
Once one chooses to ignore market values and to account for loans on the basis of "amortized cost" – as the IASB has "tentatively" concluded and the FASB may now be starting to question once again – the inevitable and…
This post could turn out to be a little dry. So, to whet your curiosity, I'll start with the payoff: First, contrary to the conclusions of the FASB and IASB, level periodic lease expense does not reflect the unerlying economics of…
As I was sitting down today to write the second and final installment on periodic lease expense, I received this email from a friend [bold italics supplied by yours truly]: I was at the IMA annual conference …. Leslie [Seidman,…