In my previous post, I committed to providing a statement of my own accounting principles with newer readers of this blog in mind. I am also adding a few observations about what the process of standard setting has come to…
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]…
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…
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,…
The best thing to come out of the lease accounting project is that, except in very limited circumstances, 'operating lease' accounting will be jettisoned. At the inception of a lease contract, lessees will have to recognize a liability to make…
This may be a little hard to explain, but my thoughts went to lease accounting after reading Jonathan Weil's Bloomberg piece about the JPMorgan derivatives debacle. And, it happened again after I read Floyd Norris's piece in NYT about the…
Many books and articles have been written to describe the mishaps that led to the Great Recession of 2008, but few have done so while putting the role of accounting standards and auditing in context. I reported back in January…