June 23, 2018

Financial reporting

AmTrust accounting

Analyst Rightly Grew Suspicious of Gorgeous Woman Who Laughed at His Accounting Jokes

“And then I said, ‘It’s accrual world!’” Earlier this year, we discussed a tradecrafty story out of The Wall Street Journal of a BDO auditor who “casually wandered around the accounting firm’s New York offices, striking up conversations with colleagues.” Little did anyone know, the auditor recorded those conversations for the Federal Bureau of Investigation […]

The SEC’s Tumultuous Love Affair with XBRL

Did the SEC commit to XBRL half-heartedly? Are they waiting for something better to come along? In the beginning, it was easy to argue yes. Fast forward 6 years and the SEC is still holding on to the XBRL — for better or worse. And, as flawed as it may be, XBRL/iXBRL looks like it […]

FASB Might Take a Breather on Standard Setting After Some People Yelled at Them

I'm sure working at the FASB is harder than I imagine it to be. What I imagine it to be is a bunch of people who like to read about accounting reading a lot about accounting. Then every once in awhile a few people get together to kick around crazy ideas about how to make […]

New SEC Rules Have Made GAAP Great Again (in Press Releases Anyway)

For some time now, I've been featuring various worries by various people about non-GAAP reporting in the morning roundup. You see, lots of people think that GAAP = Good and non-GAAP = Bad because non-GAAP reporting often presents a rosier picture of a company's financial performance. This made non-GAAP reporting immensely popular among public companies […]

Simplifying Financial Reporting Is Hard

As a concept, business is simple. Someone willing to buy a thing or a service gives you money for that thing or service. If you sell lots of things or services then you’ve really got something good going. Hooray! You’re an entrepreneur.

10 Gifs That CFOs Should Use in Their SEC Filings

And now, for a little bit of stupid fun. Compliance Week has a post on the SEC's clarification of what constitutes proper multimedia and graphics in company filings.  In this Compliance and Disclosure Interpretation from the Division of Corporation Finance, no joke, the following exchange is presented: Question: May a Commission filing contain graphics (such […]

#TBT: Convergence of International Accounting Standards Before Convergence Was Cool*

If you are one of the lucky few who has taken the CPA exam since IFRS was added into the mix, you may be surprised to know we've actually been at this whole convergence thing for some time. Except it wasn't always called convergence. Says FASB: The 1960s—Calls for International Standards and Some Early StepsInterest […]

The Possibility Remains the FASB Could Turn Their Simplification Initiative Into a Giant Charlie Foxtrot

Accounting rules are complex. It is known. The Financial Accounting Standards Board, in an effort to serve its stakeholders, has made it a priority to make them a little less awful. This is no small feat and Russ Golden, FASB Chairman, is looking for tap-ins:   “Complexity in accounting can be costly to both investors and […]

Maybe We Should Just Let the Banks Write Their Own Loan Loss Accounting Rules

Banks really appreciate the effort to move away from the recognition of losses as they occur approach, FASB, but:    The American Bankers Association has published a “frequently asked questions” document reacting to FASB's approach. The group sees FASB's proposal as an improvement over the existing requirement, but still has concerns. “While the incurred loss […]

ICYMI: Here Are Some Accounting Execs Talking About How Useless XBRL Is

The mandatory use of eXtensible Business Reporting Language by large public companies began in 2009 and was extended to smaller filers in 2011. And while it has made searching for SEC filings a breeze, it was the sincere hope of the SEC that XBRL would also be a serviceable tool for companies to do similarly […]