Banks push review of FV proposal

The new Frank-Dodd act on financial reform contains a section creating a Financial Stability Oversight Council, with one of its tasks being the review of (and commenting on) any proposed changes in accounting or auditing standards.  A letter to one of the Council’s member agencies begins as follows: “The American Bankers Association (ABA) respectfully requests [...] Read more > >

FV of own Debt Affected by a Change in Credit Risk

I was just perusing a Moody’s report here on standard adjustments that they make. I was somewhat surprised that they reverse the impact of the changes in a company’s (well in the case of the report i’m reading, a BANK’s) own credit risk on current period gains or losses related to the FV of their [...] Read more > >

Very good information for class – Dell’s issues

Read through this, get exciting nuggets for your class! Read more > >

Here’s another good one

Hi everyone, Just last week, I signed up for another CPE session at AAA (recall that I previously posted about FASB/IASB update on Sunday and how you need to be there!!). Anyway, I thought I was going to be goofing off on Saturday afternoon in San Francisco but then my goof-off plans fell through. So [...] Read more > >

Does revenue recognition require a customer?

I’ve just finished reading the IASB/FASB exposure draft on revenue recognition, and I have all kinds of questions running through my head. But before I get to those questions, let me first say that I am very impressed with this document. In fewer than 90 paragraphs of guidance (ignoring application guidance), the IASB/FASB have laid [...] Read more > >

Job Opportunity at the PCAOB

The Public Company Accounting Oversight Board (PCAOB) is looking for a PhD student who would like to intern with the Office of Research and Analysis (ORA) in the PCAOB’s Washington DC headquarters. This role will provide support to the quantitative economics group in ORA by assisting in studies and analyses conducted by the group.  This [...] Read more > >

PCAOB Rules Violated Constitution, but Impact Seems Minimal

You can look at the 113 page opinion (pdf), or just accept the New York Times’ summary: The court turned aside a broad challenge to one part of the law, which established the Public Company Accounting Oversight Board to regulate the accounting industry. Some commentators had forecast that the court might throw out the entire [...] Read more > >

Revenue Recognition Exposure Draft Exposed

The FASB and IASB released their exposure draft of their proposed revenue recognition standards. From paragraphs IN8 and IN9 of the official document In summary, the core principle [of revenue recognition] would require an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration [...] Read more > >

Low hanging fruit for experimentalists

Read my post from a few days ago on convertible debt. This topic of hybrids has long seemed like low-hanging fruit to me especially for experimentalists who can create conditions that don’t exist in the real world (which is probably what you would need to do for this topic). Any experimentalists out there who understand [...] Read more > >

Help me please…

FROM FORD MOTOR CO.’s 2009 financials. Convertible Debt Instruments. We adopted the FASB’s new standard on accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) on January 1, 2009. The standard specifies that issuers of convertible debt securities that, upon conversion, may be settled in cash should [...] Read more > >