We know that mortgage giants Fannie Mae and Freddie Mac posted sharp declines today. And we are told -- though we don't really know -- that this drop pulled the financial sector and even the broader market lower as well. We are also told that the reason for Fannie...
Financial reporting, done annually by private enterprises and quarterly by public companies, offers essential information about the financial health of an organization. Interested parties often use this information to support investing and financing decisions. Companies prepare their reports in an agreed format, including a balance sheet, income statement, cash flow...
Payments for leased corporate assets must be accounted for in financial statements, to accurately reflectthe company's financial obligations. There are two accounting methods, one for each type of lease: “operating” or “capital.”The FASB Financial Accounting Standards Board has developed objective criteria to help managers identify the type of lease based...
The Financial Accounting Standards Board has issued Statement of Financial Accounting Standards No. 156, Accounting for Servicing of Financial Assets, which provides an approach to simplify efforts to obtain hedge-like offset accounting. This new Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments...
In June 2005, the staff of the United States Securities and Exchange Commission the SEC submitted to the President of the United States, the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate, and the Committee of Financial Services of the U.S. House of Representatives its Report and...
A survey of the Financial Accounting Standards Board's advisory group, the Financial Accounting Standards Advisory Council, identified revenue recognition as FASB's top issue for the fourth consecutive year. The United States has no general-accounting standard on revenue recognition. Practices have developed for certain industries and for certain transactions, but answers...
The paper consist of a survey findings that addresses the future equity compensation practices and implementation issues as it relates to the adoption of the Financial Accounting Standards Board's FASB newly revised accounting standard for stock-based compensation, FAS 123R.The survey drew responses from 343 public (69%) and private companies (31%)...
Under FASB Statement 143, a company must record a liability for its legal obligations stemming from the eventual retirement of its tangible long-lived assets, whether that obligation results from the acquisition, construction, or development of the asset. However, many companies have not recorded a liability, concluding that either the conditional...
The SEC issued Staff Accounting Bulletin SAB No. 101 to address its concern that firms were masking true performance by managing earnings using accelerated revenue recognition. Critics of this Accounting Bulletin stated that it would eliminate industry-accepted revenue recognition practices and reduce the quality of reported earnings. The FASB's revenue...
In response to a decade-long push by the Financial Accounting Standards Board FASB, more than 750 publicly traded companies now voluntarily expense stock options, and an upcoming FASB rule would require the laggards to join them. But a group of influential businesses, concentrated in high-tech industries, has convinced some members...
From the executive summary: ‘Bending to corporate and industry pressure, the Financial Accounting Standards Board FASB has decided to delay the implementation of the Statement 123R, its proposed standard that would require companies to expense the value of employee stock options in the income statement. After much debate, the board...
From the executive summary: ‘The endgame in the decade-long debate over stock options is finally playing out. The Financial Accounting Standards Board has an expensing requirement ready to go, although it may delay implementation. The International Accounting Standards Board's standard on expensing goes into effect. And, while efforts to derail...
From the executive summary: ‘The Financial Accounting Standards Board FASAB has decided to step back from a proposed rule for how companies should account for the income tax effects of share-based compensation. In its place, FASB retained earlier guidance that allows for a simpler, portfolio-type accounting approach.’ The paper examines...
On March 31, 2004, the Financial Accounting Standards Board FASB released its much anticipated exposure draft ED highlighting the proposed accounting rules for all "Share-Based Payment" compensation awards. The FASB intends to release its final standard in the fourth quarter of 2004, and require adoption for fiscal years beginning after...
On June 17, 2004, FASB issued for comment a Proposed Interpretation of FASB Statement No. 143, Accounting for Asset Retirement Obligations. FASB Statement No. 143 requires entities to record a liability for legal obligations stemming from the eventual retirement of a tangible long-lived asset. Essentially FASB believes that no tangible...
In March, the Financial Accounting Standards Board FASB issued an exposure draft of a proposed rule change that would require companies to recognize stock option grants as a cost on their income statement, just like any other form of compensation. But the FASB's move confronts Chief Financial Officers CFOs with...
On March 31, 2004, the Financial Accounting Standards Board FASB issued an exposure document on a proposed Statement, Share-Based Payment, an Amendment of FASB Statements No. 123 and 95, which addresses the accounting for compensation to employees in the form of equity shares, including stock options. The paper recognizes that...
The financial Accounting Standards Board FASB has issued its proposal that would require employers to measure a compensation expense based on the fair value of stock-based compensation awards at the grant date. To determine the "fair value" of an employee stock option, FASB now prefers a lattice-based model instead of...
Global accounting standard setters are moving closer to crafting one set of comprehensive guidelines for how and when companies should report revenue, and have set the end of this year as a target date for publishing a draft, according to Reuters. The proposals being discussed between the Financial Accounting Standards...
