Though rejected by the House, the latest iteration of the federal government’s $700 billion bank bailout proposal would give the Securities and Exchange Commission authority to suspend fair-value measurement rules for single issuers and would direct the Securities and Exchange Commission to study fair value and report the findings to Congress within 90 days. Meanwhile […]
Tammy Whitehouse
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FASB Backs Off Planned Contingency Disclosures
The Financial Accounting Standards Board has decided to retreat and regroup from its plan to call for more disclosure about the potential outcomes of contingencies, such as lawsuits and other pending, uncertain events. Barraged by 239 comment letters to date on its proposal to amend Financial Accounting Statement No. 5: Accounting for Contingencies, FASB has […]
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Bank Association Calls for Fast Fair-Value Action
As the U.S. Treasury continues to pitch its massive bank bailout proposal to a wary Congress, special interest groups are pummeling regulators with opposing views on whether action on fair-value accounting would help resolve the crisis. The American Bankers Association appealed to Christopher Cox, chairman of the Securities and Exchange Commission, to provide “immediate guidance” […]
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Herz Implores “Golden Rule” to Fix Market Woes
No doubt Bob Herz, chairman of the Financial Accounting Standards Board, left a few folks squirming in their seats with his frank assessment of how the markets managed to arrive—again—at a state of crisis. At a recent PricewaterhouseCoopers conference, Herz pulled no punches in describing how market players seem to have a flashcube memory about […]
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Companies Welcome Off-Balance Sheet Reforms
Just as the federal government engineers historic bailouts for financial giants like Fannie Mae, Freddie Mac, and insurer AIG, an accounting rule proposal aims to end the kind of off-balance-sheet accounting that contributed to such spectacular demise. Given the fragility of capital markets and the political pressures at play, though, it’s possible the rule will […]
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SEC OKs AS6, Advises PCAOB to Look at Confidentiality
The Securities and Exchange Commission has rubber-stamped a new auditing standard, but with encouragement to the Public Company Accounting Oversight Board to consider developing a new rule advising auditors of their responsibility regarding confidential client information. The SEC did its own due diligence on Auditing Standard No. 6 Evaluating Consistency of Financial Statements and Amendments […]
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SEC Offers CFOs More MD&A Guidance on FAS 157
The Securities and Exchange Commission has updated its guidance to preparers of financial statements about what they should plan to say in Management Discussion and Analysis regarding their measurement of fair value, especially given continuing market turmoil. The SEC Division of Corporation Finance published a sample of the letter on its Website for the benefit […]
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Gradison to SEC on IFRS: Make a Decision
Bill Gradison, a member of the Public Company Accounting Oversight Board, has a word of advice for the U.S. capital market system, including its regulators. If, in fact, you’re moving to international accounting standards, get on with it. In personal remarks exclusively to Compliance Week, Gradison said he’s concerned the process of determining if and/or […]
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Web Programs Help Steer Smaller Companies Into AS5
As smaller public companies and their auditors gear up for their first audit of management’s report on internal controls, learning opportunities abound. The Center for Audit Quality is hosting a live, interactive Webcast on Sept. 25 to explore how well prepared auditors and management are for the first round of audits under Auditing Standard No. […]
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FASB Requires New Disclosures for Credit Derivatives
Sellers of credit derivatives are now required to provide a better view of the risks around such instruments following the completion of new guidance from the Financial Accounting Standards Board. The newly published staff position amends Financial Accounting Standard No. 133, Accounting for Derivative Instruments and Hedging Activity, to require new disclosures by sellers of […]
