prior post, the FASB adopted a new presentation requirement for Other Comprehensive Income (OCI). The move basically eliminated one of the previously acceptable ways to present OCI. No big deal, right? What I missed was that the FASB required a “roll forward” on OCI, which had not been required before. ASU No. 2011-05 requires line [...] Read more > >
Link to Video Recording here: http://dl.dropbox.com/u/31770485/Standard-setting%20for%20private%20companies.wmv To participate in the Roundtable, please follow these instructions. 1) Go to http://intercall.webex.com anytime after 3:00 pm (New York time) on Tuesday, November 1. 2) Type in the following meeting number: 599 285 948 and click “Join Now”. 3) On the next page, fill in your name, email address, [...] Read more > >
“Lease payments should include amounts expected to be payable under residual value guarantees… The Boards discussed the subsequent measurement of residual value guarantees by lessees … and tentatively decided that: The amounts expected to be payable under residual value guarantees included in the measurement of the lessee’s right-of-use asset should be amortized consistently with how [...] Read more > >
The AICPA’s response to the FAF’s proposal for the creation of a Private Company Standards Improvement Council (PCSIC) has been predictably unsupportive. The organization has made its preference for a separate private company standards-setting board widely known, and intends to organize another letter-writing campaign among its membership expressing this view. A similar campaign by the [...] Read more > >
This is the 'own credit risk' problem. Gains from fair value accounting on your liabilities because your own discount rate has increased because your credit worthiness has deteriorated. (So the fair value of your liabilities decreases (debit the debt) and an unrealized holding gain is recognized (credit gain).) Debit valuation adjustment?? Ay Ay Ay Yi. [...] Read more > >
Even if you were unable to attend Hal’s session last week, please plan to join us for the upcoming Roundtable with Doron. Participation (PLEASE NOTE DIRECTIONS FOR PARTICIPATION HAVE CHANGED): To participate in the FASB Roundtable, 1) go to http://intercall.webex.com anytime after 2:00 pm (New York time) on Tuesday, October 7. 2) Type [...] Read more > >
Plan to Establish the Private Company Standards Improvement Council. The plan “calls for the establishment of a new council with the authority to identify, propose and vote on specific improvements to US accounting standards for private companies.” As stated in this press release, the council, if established, would “identify, propose, deliberate and formally vote on [...] Read more > >
As I prepared for class, i searched for examples and found a number that had done the treatment incorrectly. I saw a lot of the incorrect treatment on the asset side. I emailed Dan Gode who said the same issue applies to the asset side (i.e., no reason why treatment should be different there). These [...] Read more > >