Accounting & Financial Analysis News by GLG Council Members

The term auction facility is a positive development.  On December 11, the markets expressed disappointment because the discount rate was not cut by 50 basis points.  This new monetary policy tool more than compensates; it effectively allows the discount rate to be determined by demand and supply.

The announcement  by  UBS  of  a  $10 bn  writedown  and  financing  from  Singapore  and  the  Middle  East  coming  so  soon  after  Citigroup  took  financing  from  Dubai  points  to a  shift  in  banking  industry  financing  and  control....

An interesting article which discusses how yesterdays global factors since the end of the cold war have resulted in today's crisis & what it will make for tomorrow's stabilization.

For portfolio investors, there are considerable risks: 1. Available for Sale Assets:After selling low rated asset backed securities worth $3 billion at a loss of $2.2 billion, much of the remaining portfolio is AA rated or higher; I find this encouraging.  Will E-Trade be able to maintain capital if unrealized accounting losses mount as fair market values fall in response to heightened risks...

A 25 basis point was in line with expectation.  What was unexpected was no reduction of the discount/funds rate.  The tone of the statement is encouraging; it indicates primary concern over risks to growth & stability of the financial markets while expressing a degree of comfort on core inflation.  Any monetary policy maker needs to keep its eye on inflation; mentioning that inflation...

All one needs to do is to look at the flyers from companies like Best Buy, Circuit City, and Walmart etc. to find out that GPS devices are the hot items today for consumers. Companies like Nokia have already taken a giant leap by acquiring Navteq and plan to integrate GPS technology in their cell phones. Google’s entry into this arena by establishing an alliance with TomTom is a step in the right...

I came across an interesting article (link included in this post) on the topic of receivable securitization programs which gives a nice overview of these types of programs including the structure, economics and accounting for them.  The article essentially calls receivable securitizations as “debt in disguise” – which I believe is reasonable because receivable sales programs are more...

The FASB issued a new standard last week within the area of accounting for acquisitions that is said to represent a major departure from the current accounting practices being used by companies.  Some are saying the new rule will be difficult to apply and will require companies and analysts to overcome a notable learning curve.  The "Analysis" section below (1) gives a brief summary of the...

The Orlando market, which is generally considered to encompass the counties of Orange, Seminole, Lake, Osceola and Polk has experienced declining sales since mid (in most counties) 2006. While the most overbuilt areas, near the tourist attractions in Polk and Osceola counties, countinue to decline, beset by too many investors, too many lower paid owners (with ARM's) and too much supply, other areas...

1.  Countries adopting IFRS are not always adopting the same standards.  If you look closely, the term "as adopted' is being used a lot (e.g., China).  What that means is countries are adopting IFRS in principle, but are differing on interpretation and actual application/practice. 2.  The end result is the need for financial analysts to become more educated and dig deeper into...