Accounting standards

Our regular readers know that our shtick is criticizing generally accepted accounting principles, as well as those who create and implement them without fully anticipating their negative impact on the quality of the resulting financial statements. This time we're going after accounting for income tax effects, which has roots dating back to 1967 and APB Opinion 11. Even though the Financial Accounting Standards Board tried to reform tax accounting with SFAS 109 20 years ago, we don't see much actual improvement.

The Financial Accounting Standards Board has issued an Accounting Standards Update that would revise the rules for how companies can deal with repurchase agreements like the kind Lehman Brothers used to temporarily move billion of dollars of assets temporarily off its books before reporting its quarterly results.

The International Public Sector Accounting Standards Board has published its 2011 Handbook of International Public Sector Accounting Pronouncements.

The Financial Accounting Standards Board has issued an exposure draft of a proposed Accounting Standards Update that aims to simplify how an entity is supposed to test goodwill for impairment.

The Financial Accounting Standards Board and the International Accounting Standards Board provided a progress report Thursday on the latest timeline for their major convergence projects.

The International Accounting Education Standards Board proposed changes in its ethics standards to provide for learning and development activities in professional values and ethics for accountants throughout their careers.

Leaders of the Financial Accounting Standards Board and the International Accounting Standards Board said Thursday they have pushed back their work on the handful of “priority” projects they had committed to complete this year.

The Financial Accounting Standards Board has revised its accounting standards to provide greater consistency in the treatment of various types of debt restructuring.

All accountants, and certainly all CPAs, should be keenly interested in and concerned about the activities of the American Institute of CPAs. As the leading professional society for CPAs, it shapes both policy and perceptions for the entire profession, members and non-members alike.

The Governmental Accounting Standards Board has proposed guidance on how to apply the accounting standards when a hedging derivative is terminated for a government entity.

Representatives of the U.S. and Japanese accounting standards boards met in Connecticut this week to talk about their efforts to converge with international standards.

The Financial Accounting Standards Board has issued a discussion paper to solicit input on how to improve, simplify, and converge the financial reporting requirements for hedging activities, as it foresees the possibility of increasing divergence from international standards.

GASB UPDATES 'BLENDED' ENTITIES STANDARDS

Like others, we're watching the trumpeted "Blue Ribbon Panel" on accounting standards for private companies. Unlike others, our expectations are very low because we aren't confident this group understands what reforms are needed.

CFA Institute has released the Compensation Discussion and Analysis Template, a report that provides guidance for public companies wishing to improve the CD&A portion of their proxy statement.

The Financial Accounting Standards Board and the International Accounting Standards Board have published a joint set of proposals to account for the impairment of financial assets such as loans managed in an open portfolio.

The Financial Accounting Standards Board and the International Accounting Standards Board have published a proposal to establish a common approach to offsetting financial assets and liabilities on the balance sheet.

The Financial Accounting Standards Board has taken a step back on previous plans to require companies to report all of their financial instruments at fair value.

The International Auditing and Assurance Standards Board released a new proposed strategy and work program for 2012-2014 on Monday.

The Governmental Accounting Standards Board issued a new accounting statement Thursday aimed at incorporating accounting guidance issued by outside standard-setters that is applicable to state and local governments.