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Tag >> fair value
Oct 12
2010

Another step forward for little GAAP

Posted by dbedell in Risk and Compliancelittle GAAPGAAPfair valuecomplianceAccounting

dbedell

The panel set up to look at establishing new accounting rules for private companies has completed its final public meeting and is one step closer to detailing how such rules should be developed.

The panel, set up at year-end last year by the Financial Accounting foundation (FAF), the American Institute of Certified Public Accountants, and the National Association of State Boards of Accountancy, made two major recommendations coming out of the final public meeting.

Aug 25
2010

Banks' asset values should be marked down by 20 percent: report

Posted by Ron F in financial crisisfinanacial reportingFASBfair valuecompliancebalance sheetsamortizationAccounting

Ron F

Jack Ciesielski has a new report out that puts banks' arguments against fair value squarely in their place. And the analysis alone should make short shrift of the industry's complaints, though it no doubt will do nothing of the sort.

The accounting expert and investment adviser who runs The Analyst's Accounting Observer finds that banks account for 96 percent of all the asset markdowns to the balance sheets of the S&P 500 that he estimates would result from enactment of the Financial Accounting Standard Board's latest proposal.

Aug 23
2010

Banks reduce Level 3 assets

Posted by mcole in securitizationRiskfair valueBanksBanking

mcole

Large US banks have reduced hard-to-value Level 3 assets since the beginning of the year, according to quarterly filings, but it doesn't mean their balance sheets are in better shape.

The decline was modest for some banks, especially compared with the sharp improvement in 2009 when banks raised equity and reduced leverage. In addition, the recent requirements to consolidate off-balance sheet vehicles helped remove some assets from the Level 3 bucket--but only to reclassify them under different categories on balance sheets.

Jul 15
2010

Banks' anti-fair value somersault falls flat

Posted by Going Concern in GAAPFASBfair valuecomplianceBanksbanking reformbanking industryAccounting

Going Concern

 Submitted by Caleb Newquist, republished from Going Concern, Accounting News for Accountants and CFOs.

 Just last week we mentioned the American Bankers Association and its efforts to undermine the FASB's latest fair value proposal that, in the ABA's mind, could bring down civilization as we know it.

Jul 09
2010

Banks perform somersault in anti-fair value campaign

Posted by Going Concern in GAAPfinanacial reportingFASBfair valuecomplianceBanksbank lendingbalance sheetsAccounting

Going Concern

Submitted by Caleb Newquist, republished from Going Concern, Accounting News for Accountants and CFOs.

Banks hate the FASB. This is understood. They're especially bent out of shape these days because the Board recently put out its latest fair value proposal that requires them to carry their loans at fair value. Bob Herz knew that this was going to cause hella-belly aching although he may not have predicted the virtual assault that was coming.

Jun 02
2010

Another step backward on global accounting standards

Posted by mcole in RiskIFRSIASBFASBfair valuecomplianceAccounting

mcole

When it comes to convergence of accounting standards between the US and the rest of the world, it's often one step forward, two steps back.

Last week, as part of global convergence, the Financial Accounting Standards Board and the International Accounting Standards Board released a joint proposal to change accounting and reporting of financial instruments and the statement of comprehensive income. It was the first of a series of joint proposals to come from the two boards by the third quarter of 2010, representing an important push toward global accounting convergence.

Apr 06
2010

IASB independence once again tested

Posted by dbedell in IASBFASBfair valueEuropean UnioncomplianceAccounting

dbedell

As we reported  recently, one of the biggest concerns of IASB/FASB accounting standard convergence is the alacrity with which the IASB gave in to political pressure to ease banks’ fair value reporting standards during the financial crisis. However the IASB is now presented with the chance to quell fears and dispel the belief that it is under the thumb of the European Union – whether they will remains to be seen.

This issue comes once again to the fore as new EU internal market commissioner Michel Barnier, at a recent meeting of top accounting firms and regulators in London, inferred that future funding for the IASB could depend on its' agreeing to more involvement by EU leaders. The Financial Times reported on Sunday that Barnier said policymakers in Brussels planned to review current IASB funding – of $6.5 million – annually and that it was “premature” to think that they would increase that budget. This came after statements suggesting that the EU should be more involved in IASB governance, which left the audience stunned, according to the FT.

Sep 02
2009

We don’t need no stinkin’ badges

Posted by RedConn in John Gofffair valuecompliancecompensation

RedConn

You knew the blowback was coming at some point. Less than a year since the Great September meltdown, opponents of rigorous financial reform have come out swinging.

On Wednesday, Craig Donohue, the head of the Chicago Mercantile Exchange, warned against creating a single set of rules for policing both the securities markets and the derivatives markets.

Sep 01
2009

Now about that fair value business…

Posted by MQuinn in FASBfair valueBankingAccounting

MQuinn

Back in July my colleague Ron Fink was fretting that the Financial Accounting Standards Board was going to give banks a permanent break from fair value.

The accounting standards setter in April had given financial institutions leeway in how they could account for toxic mortgages and other illiquid assets. Three months later it looked like they would retain that discretion for the foreseeable future.

But FASB isn't going completely soft here. In a release Friday, the board proposed new disclosures about recurring and nonrecurring fair value measurements.

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