The Fair Value Debate - The Political Imperative - A Exercise in Futility?
November 19, 2009
Accounting Rules:Divided and Overruled | www.economist.com
Fair value has been in the news for sometime. Also banks are now complaining and so are regulators and politicians. The convergence issue and the impact of a far off standard setter not subject to local influence is having its effects on the debate. In this analysis I look at why fair value should not be influenced by those not well conversant with the subject. While I agree that accountants alone should not influence the debate yet the undue influence of politicians should be avoided.
The Economic Downturn and Revival - Challenges for Accountants and Auditors
November 12, 2009
Failed financial firms:The bust that worked | www.economist.com
The referred article speaks of the bankruptcy reorganization plan of one Institution. In this analysis I take the referred Institution as a referral point to examine/highlight the challenges which accountants and auditors will face in their stewardship and attest function.
Accounting and The Gold Price - Fair Value - Valuation Problems to be Expected
November 4, 2009
Gold Price Tops $1090 for First Time | economictimes.indiatimes.com
As the price of gold rises on a week on week basis one can expect to see ramifications in the accounting arena. There are a number of investment products sold in the market which are linked to the price of gold and its physical holding. In this analysis I look at the nature of problems to be expected - especially in relation to fair value disclosures.
Working Capital - Internal Audit and Control - Accounting Standards
October 30, 2009
A Crash Course in Working Capital | www.cfo.com
The referred Article speaks of the importance of working capital, internal audit and proper financial statement and how these interact to provide a proper business growth environment. In my analysis below I give my thoughts on these aspects.
Offshoring - Changing Accounting Dynamics - Auditing and Control
October 8, 2009
The New Calculus of Offshoring | www.cfo.com
Increased overseas costs, security dynamics and the sudden availability of newly jobless employees has changed the offshoring dynamics. Offshoring continues but the repetitive tasks with high risk and control difficulties are getting out of the offshoring matrix. In this analysis I look at the effects of these changing dynamics in relation to auditing and control factors.
Central Bank Policy - Gold - Dollar - Accounting and the Gold Standard
October 8, 2009
Central Banks in Europe Hold Rates Steady | www.nytimes.com
The policy of Central Banks over the last year has left the monetary system in a state of limbo. The value of the dollar in terms of bullion and other commodities is taking a beating. The increasing value of gold in currency terms reminds one of the days of the gold standard and the benefits of having gold as a store of value. In this analysis I take a look at how this increasing value of gold may effect internal controls and corporate financial policies.
Business Cycles, Legislation and Accounting - Where will it Lead?
September 15, 2009
For Obama, a Chance to Reform the Street is Fading | www.nytimes.com
The current recession is part of a business cycle. The reasons for the recession are several but then a trough after a long period of prosperity is to be expected. President Obama puts the blame on investment bankers and executives. There is also talk of legislation to limit further repeats. I wonder how this will impact accounting and in turn the figures on which financial decisions are made. In this analysis i present some of my thoughts on the subject..
The Impending Changing Capital Structure at Banks - Challanges for Accountants
September 7, 2009
G20 Calls for Better Capital Buffers at Banks | www.ft.com
The G20 meeting has agreed that banks need to be properly capitalized with equity instruments as compared to hybrid debt-equity. A number of other changes in the capitalization of banks is also proposed. This would mean that debt instruments with characteristics of equity would have a bleak future in the capital structure of banks. In this analysis I highlight some of the issues involved in this conundrum.
Global Debt Situation - Fair Value - Financial Statements - Paradigms
September 6, 2009
US says debt Outlook Worsening | www.ft.com
The global economy is in a tailspin. Politicians and economists like us to believe otherwise amid worsening job losses and a weakening US dollar. The graph of the USD vs. gold price shows the fall in value of the USD. This situation throws up questions for the auditor/CFO/accountant and others involved with financial statements. Analysts would also need to evaluate the fair value of assets on financial statements in this evolving situation. In this analysis I look at some of these questions.
Tax Fudges and Financial Reporting - The Paradigm - Accounting Standards Context
August 25, 2009
Closing the Havens | www.ft.com
Tax havens have represented security against political repression for long. They have also with the evolution of tax laws become a pain for Governments. This is especially with the growth of acceptability of the right of the State to levy taxes. The recent developments with Tax Haven authorities agreeing to divulge confidential information raises questions for the accounting profession. In this analysis I look at issues that these developments raise for the accounting and auditing profession.
Obama Expected to Sign Generous NOL Carryback Bill on Friday
November 5, 2009
Bank of America and The Lesson of Parmalat
September 15, 2009
September 6, 2009
The Consequences of The UBS Tax Evasion Cases
September 1, 2009
The Reality of UBS and Liechtenstein Tax Settlements
August 25, 2009