When we talk about global accounting, put me in the “one-set-of-standards” column. I often argue that no logical reason exists to account for the same transaction in different ways in different countries. I also maintain that a single set of global accounting standards is in the best interests of the capital markets, and that International […]
Scott Taub
Posted inAccounting & Auditing
Don’t Create ‘Little GAAP’ for the Wrong Reasons
Trustees of the Financial Accounting Foundation received a report early this year from the blue-ribbon Panel on Standard Setting for Private Companies on how best to meet the needs of users of private-company financial statements. The report recommends that the FAF set up a separate standard-setting board to evaluate both old and new standards published […]
Posted inFrom the Archive
Accounting Rules, Bank Oversight Square Off
Are accounting standard setters in danger of letting the tail wag the dog? In February, Hans Hoogervorst, the incoming chairman of the International Accounting Standards Board, argued that “financial stability” should not be a direct objective of reforming accounting standards, during a speech at a conference organized by the European Commission. Transparency, he argued, should […]
Posted inAccounting & Auditing
The Implications of Predicting Loan Loss
The Financial Accounting Standards Board has been working for decades on accounting for financial instruments. While the urgency associated with the topic has waxed and waned, it has never completely dropped off the agenda. Of course, the financial crisis has pushed it to the forefront again. A May 2010 FASB proposal would have required virtually […]
Posted inFrom the Archive
Meaningful Loss Contingency Disclosure Could Head Off a FASB Intervention
The Financial Accounting Standards Board suspended deliberations in November on its project to improve disclosure of loss contingencies, including contingencies relating to litigation. The sigh of relief in the corporate reporting and legal communities was palpable. Most companies will respond to this development by making no changes to the way they prepare disclosures related to […]
Posted inAccounting & Auditing
Accounting’s Wild Times of 2010; 2011 Predictions
A lot is happening in the accounting world right now. Just in the past few months, the Financial Accounting Standards Board has issued exposure drafts on revenue, leases, and financial instruments. Public comments on those and other proposals are pouring in, and the debate on those topics is sure to be lively in the next […]
Posted inAccounting & Auditing
Make All Voices Count in Debates on Accounting
Among the most enjoyable parts of the six years I spent at the Securities and Exchange Commission were the intelligent discussions on how to resolve difficult financial reporting issues. Although many people think of accounting as a boring profession with little conflict, those of us in the profession know that important issues almost always result […]
Posted inAccounting & Auditing
Helping Yourself: Send FASB Useful Comment Letters
My first column this year discussed a few hopes for 2010. One of them happened in February, when the Securities and Exchange Commission clarified its thinking about International Financial Reporting Standards. I’m happy to report that another happened in June, as the Financial Accounting Standards Board issued several exposure drafts as part of its big […]
Posted inAccounting & Auditing
Getting to IFRS With Wisdom, Not Expediency
In my first column this year, I wrote that I hoped the Securities and Exchange Commission would soon give us some clarity on its thinking in regard to moving U.S. reporting companies to International Financial Reporting Standards to calm some of the anxiety regarding that potential move. My wish was fulfilled in February when the […]
Posted inAccounting & Auditing
Evolving Answers on Good Accounting Policy
One of my partners at Financial Reporting Advisors is fond of saying about accounting, “The questions never change.” He’s been watching accounting policy for a lot longer than I have, but even in my relatively brief time, I’ve seen enough to know he’s right. In a 2006 speech about the issue of judgment in accounting, […]
