For the past 18 months or so, almost everything in the financial reporting world seems to have been about the credit crisis and recession. The focus has been on whether accounting standards should be changed, whether impairments were being recorded quickly enough, whether risk disclosures were sufficient, and so forth. Thankfully, it appears that we’ll […]
Scott Taub
Posted inAccounting & Auditing
A Bundle of Concerns on New Revenue Rules
I recently wrote about the opportunities and challenges that the new Financial Accounting Standards Nos. 166 and 167 bring to U.S. financial reporting. My fear was that the new standards won’t help improve financial reporting not because of shortcomings in the standards themselves, but because experience suggests that implementation of the standards might not go […]
Posted inAccounting & Auditing
How to Handle the Five Habits of Difficult Auditors
In previous columns here, I’ve often talked about how to handle difficult accounting issues. I have not, however, talked about how to handle auditor issues. It’s time that I do. Working effectively with your external auditors when accounting questions arise is important not just because the auditor needs to opine on the financial statements, but […]
Posted inAccounting & Auditing
Farewell to the QSPE; FASB Makes a Fresh Start
With the Financial Accounting Standards Board’s recent publication of standards No. 166, Accounting for Transfers of Financial Assets, and No. 167, Amendments to FASB Interpretation No. 46(R), the end of the qualified special purpose entity is, thankfully, close at hand. We should all celebrate. QSPEs, as these vehicles are known, have always been troublesome accounting […]
Posted inAccounting & Auditing
Finding Firmer Ground for Your Accounting Ideas
The Commissioners and staff at the Securities and Exchange Commission are great people: smart, talented, personable. Nonetheless, I would guess that most Compliance Week readers would like to interact with them as little as possible. I’m here to help. No, I don’t know how to get your company off the list to get an SEC […]
Posted inUncategorized
IFRS & U.S. GAAP: Where Do We Stand?
In late 2007, I predicted in a presentation that U.S. companies would be using International Financial Reporting Standards as their basis of accounting within 10 years. In the Q&A that followed, two audience members said my prediction was ridiculous; one said the United States wouldn’t move that quickly, while the other said there was no […]
Posted inFrom the Archive
Lessons Learned in 2008 That Will Benefit in 2009
I think I can safely say most of us are happy to see 2008 recede into history. While the economic crisis of last year was not primarily one of financial reporting, it did expose the shortcomings in our financial reporting structure. That exposure can (and should) lead to future improvements, so in this column I […]
Posted inAccounting & Auditing
Accounting’s Role in the Market Bailout
Some of my friends and relatives ask me who to blame for their 401(k) losses, the $700 billion bailout, and the fact that they can’t refinance their mortgage. There is lots of blame to go around: Homeowners who borrowed too much. Mortgage brokers who helped homeowners over-borrow. Institutions that lent based on anticipated escalation in […]
Posted inAccounting & Auditing
How the PCAOB Fares After Five Years on the Job
It has been more than six years since the Public Company Accounting Oversight Board was created by the Sarbanes-Oxley Act, five years since the Securities and Exchange Commission declared the PCAOB operational, and four years since the PCAOB started its first inspections of registered public accounting firms. The PCAOB’s work, in combination with other changes […]
Posted inAccounting & Auditing
Reaching a Fair Settlement on Fair Value
In the year I’ve been writing for Compliance Week, one subject I haven’t broached is fair-value accounting. I’m not alone; the Securities and Exchange Commission’s Advisory Committee to Improve Financial Reporting has decided not to touch it either, while offering recommendations on all manner of other nettlesome problems. Nonetheless, the debate continues over fair value […]