FAF Recommends Condorsement to SEC

comment letter to the Securities and Exchange Commission recommending that the SEC adopt a condorsement approach to incorporate IFRS into the US financial reporting system. The approach recommended by the FAF is somewhat different than the model of condorsement previously described by the SEC, but is similar in that the FASB would consult with the [...] Read more > >

Neat case

I don't know if any of you saw this, but it is a great potential case. First, here's a story on Green Mountain Coffee Roasters in Barrons Click here. Second, here’s a link to the downloadable 110 slide presentation that the analyst (who is short the stock) did. It is amazing to watch the detailed [...] Read more > >

A new dimension to disclosure reform

One of the questions around the disclosure framework is how the FASB will coordinate with the SEC and IASB. One issue that may make this question even more interesting is that a new group has potentially inserted itself in the discussion. Last month, the PCAOB released a concepts statement outlining proposed revisions to the auditor [...] Read more > >

Must read coming out soon

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Stealth change in OCI delayed

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 > >

Trying to appreciate new lease depreciation decision

“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 > >

Will the AICPA create a new regulatory board for private companies?

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 > >

Good article to read on structured finance

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DVA? where do these names come from …

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 > >

FAF Proposes a New Private Company Council

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 > >