Items Tagged with 'Financial accounting'

ARTICLES

  • FASB Acts!

    At last week’s House hearing on mark-to-market accounting, representatives from both sides of the aisle blamed accounting standards for skewering bank balance sheets and demanded, as Congressman Paul Kanjorski (D-PA) put it, that “the Financial Accounting Standards Board and the Securities and Exchange Commission to do the jobs they are required to do. Emergency situations require expeditious action, not academic treatises. They must act quickly.”
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  • Sympathy for the Fair Value Devil?

    On Wednesday, the Financial Accounting Standards Board is expected to vote on a change to the rules governing guidance for certain beneficial interests in asset securitizations. FSP EITF 99-20-A would amend rules for “Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Assets” (issued as an Emerging Issues Task Force 99-20 guidance, effective after March 15, 2001).
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  • SEC: Mark-to-Market's Not the Problem

    The Securities and Exchange Commission, in a Congressionally-mandated and extremely long 211 page report released Tuesday, suggested that a controversial accounting standard has had little to do with the financial meltdown and does not need to be suspended. The debate over of the effect of FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements, which went into effect November 2007, has been one rarely afforded to any accounting standard.
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  • SEC, FASB Issue Fair Value Guidance

    Rarely have accounting standards generated so much attention as in the current financial crisis. The Securities and Exchange Commission and the Federal Accounting Standards Board, acting on growing pressure from banks and other sources, moved on Tuesday evening to provide guidance on the use of fair value accounting in inactive markets, just in time to ostensibly affect third quarter earnings.
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  • As Losses Mount, Banks Want Rewrite of “Fair Value”

    To say that write-downs have many bank’s income statements and balance sheets in a pinch is probably an understatement; the mortgage and credit mess has hit nearly every major financial market participant with a vengeance, to a tune louder than $300 billion thus far. And it’s likely to continue to do so, if you believe many of the analysts that follow credit markets closely enough.
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  • Viewpoint: What's the "Right" Home Price, Bill?

    Market commentary Tuesday by Bill Gross over at PIMCO argues that home prices are what matters most going forward, and backs a proposal by Congressional Democrats that would serve to prop up home prices under logic that says further price declines must be avoided:
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  • FAS 157 Puts the Microscope on Dead Markets

    A good measure of how closed many asset-backed, structured and other securities markets continue to be is provided by the new disclosures provided under FAS 157, Fair Value Measurement. Securities with little or no market activity fall into what's known as "Level 3 inputs"--and under current conditions, that includes sectors such as private jumbo and Alt-A bonds, subprime paper, ABS CDOs and CLOs that in good times would have been considered as Level 2 assets.
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