Economics and Leasing

I think everyone would agree there are many reasons to enter a lease. However, I think we would all also agree that if the only reason to enter a lease was to obtain a certain accounting treatment then the accounting should be changed. Bill Bosco raised some very interest points related to the leasing industry [...] Read more > >

Taxes, Financial Reporting and the Law: Roundtable with Lil Mills

If you assumed that accounting standards wouldn’t get sucked into the highly charged health care debate, you guessed wrong! From the New York Times An association representing 300 large corporations urged President Obama and Congress on Monday to repeal a provision of the health care overhaul that prompted AT&T, Caterpillar and other companies to announce [...] Read more > >

Leasing Letters and Calculators

The great thing about people who represent an industry being affected by an accounting standard is that they are highly motivated to provide content.  Bill Bosco sent me a number of files for this week’s Roundtable.  The ELFA comment letter on leasing discusses both lessor and lessee accounting, and objects strongly to the notion that [...] Read more > >

Bill Bosco's Comment Letter to the IASB

Bill Bosco, who will be our speaker at today’s Roundtable, sent along the text of his comment letter on leasing to the IASB.  Here it is, in its entirety: Sir David Tweedie                                                                              July 12, 2009 Chairman IASB Dear Sir: I support the theory that operating lease obligations arising from material operating leases should be capitalized.  [...] Read more > >

Bill Bosco’s Comment Letter to the IASB

Bill Bosco, who will be our speaker at today’s Roundtable, sent along the text of his comment letter on leasing to the IASB.  Here it is, in its entirety: Sir David Tweedie                                                                              July 12, 2009 Chairman IASB Dear Sir: I support the theory that operating lease obligations arising from material operating leases should be capitalized.  [...] Read more > >

Industry Views on Leasing Standards: Bill Bosco leads March 31 Roundtable

The FASRI Roundtable this week (11am ET, Weds Mar 31, 2010) will be lead by Bill Bosco, a member of the IASB/FASB International Working Group on leas accounting, Principal of Leasing101, and long time member of the Accounting committee of the Equipment Leasing and Finance Association (ELFA), a trade association representing the $650 billion dollar [...] Read more > >

The Definition and Measurement of Liabilities

In class yesterday, I stumbled upon an interesting apparent inconsistency between accounting for pensions and the accounting for compensated employee absences, which I had taught several weeks ago. When teaching my students about accruing for vacation pay, I observed that it seemed that if we knew for certain that employees were likely to get a [...] Read more > >

Follow up on March 2009 mark to market hearing

About a year ago (March 12, 2009) the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Entities held a hearing titled “Mark-to-Market Accounting: Practices and Implications.”  The Committee members directed several hours of fairly hostile questioning to FASB Chairman Bob Herz and SEC Chief Accountant Jim Kroeker.  If you have not seen [...] Read more > >

Roundtable: Do Fair Values Predict Future Financial Performance?

Mark Evans of Indiana University will lead our next roundtable discussion, Wednesday March 3rd, 11am ET).  Here is the abstract from his recent paper, written with Leslie Hodder and Pat Hopkins, exploring fair value in commercial banks: For a sample of commercial banks during 1994–2008, we find that accumulated fair value adjustments for investment securities [...] Read more > >

SEC says IFRS still on hold

The SEC essentially punted today on the decision to adopt IFRS in the U.S.  Acknowledging that the SEC is in the same position they were in November 2008 (when the proposed roadmap was originally issued), Mary Schapiro said the SEC hopes to be in a position by 2011 to make this decision. One of the [...] Read more > >