Accounting & Financial Analysis News by GLG Council Members

What are the econonmic and cash impacts from a tax standpoint of large impairment losses recorded by homebuilders?  How/when can cash be recovered from these losses?

Some reported gross margins from home sales may appear to be higher than they really are.  Investors should be alert for situations where reported gross margins are inflated by prior inventory writedowns.

1. Since the onset of the World Wide Web, this has been a topic of constant discussion. 2. There is no doubt that the demand for internet access is increasing by leaps and bounds. 3. However, companies providing the access points are constantly monitoring this growth and have and will respond to future growth using existing and future technology. 4. Some of this demand will be satisfied by the...

Lease accounting can be understood in relatively simple terms, and can be very beneficial to both preparers and users of financial statements.  In the case of utilities, recording the leased asset as a component of rate base would allow them the opportunity to earn a return on this asset.

This article is the best summary to date of the FASB's new standard on fair value accounting.  FAS 157 is an important standard.  First, it allows (but doesn't require) companies to abandon historical cost for a broad range of financial assets and liabilities.   It also reflects a change in the FASB's philosophical approach towards a more balance-sheet oriented approach to standards...

Institutional investors must ask hedge funds how they are assessing counterparty risk and what that means in terms of collateral management.

The article shows why the recent problems in global credit markets can have accounting effects that go far beyond the banks and other players directly touched by the crisis.  It also highlights the areas that financial statement readers should be wary of when accessing the possible effects of the crisis on companies of interest.  For example, recent market turmoil could lead to significant...

1.Global warming is not a myth but a reality. 2.  Man-made or not, it is something that we all need to be worried about. 3. There is a lot that we can do about it and our continued existence depends on it.

China gradually open up their banking and finance sector, lately is the financial services now is the credit card, the reasons are the wealth of the Chinese people getting greater every day and also China wants to put risk of maintaining great saving to foreign banks.

The  referred  article  says  that  more  than half  of  $1.1 trillion  invested last year  in  equipment  etc. was  financed through  credit  and  leases It says  that  pending  changes  in  accounting for  leases (SFAS 13) would  probably  be  prospective  in  nature ...