N.Y. Accountancy Reform Bill Now in Paterson's Hands
It’s been 61 years, but New York is one step closer to accountancy reform now that the State Assembly delivered to Gov. David A. Paterson's desk a bill, A11696, that would make sweeping changes to the state's regulations for the accounting profession, including bringing a larger number of CPAs under the state's regulatory structure and requiring CPAs working in industry to complete continuing professional education courses.
IFRS: Resistance Is Futile?
The markets have spoken.
And they have picked International Financial Reporting Standards (IFRS) over U.S. generally accepted accounting principles (GAAP), according Sir David Tweedie, chair of the International Accounting Standards Board (IASB).
During a conversation with Floyd Norris, New York Times chief financial correspondent, Tweedie expressed confidence that the U.S. will remain on track to adopting IFRS despite new leadership at the Securities and Exchange Commission. Why? Because the markets are driving its adoption, according to Tweedie. International investors may opt not to bother having to know GAAP in addition to IFRS. The use of GAAP once IFRS is the norm could even seem suspect to investors who may think companies are trying to hide something by reporting in GAAP, Tweedie said.
FASB Finalizes FSP on Impairments
The FASB voted 3-2 to approve -- with some changes based on comment letters received -- Proposed Staff Position No. EITF 99-20-a, Amendments to the Impairment and Interest Income Measurement Guidance of EITF Issue No. 99-20.
Enron Convictions Stand, But Resentencing Ordered
A federal appeals court Tuesday upheld former Enron CEO Jeffrey K. Skilling's convictions for his role in the energy giant's collapse but ordered that he be resentenced, the Washington Post reported.
Indian Outsourcing Chief Admits Billion-Dollar Accounting Fraud
The success story of outsourcing calls to India may have come to an end with the revelation of a $1 billion accounting fraud scheme.
State of the State: Needs Money, Health Insurance
Nearly three weeks after unveiling his bare-bones budget proposal, New York state Gov. David A. Paterson is expected to argue for increased health insurance for New Yorkers before a joint session of the Legislature in his first "State of the State" address.
SEC Names Acting Chief Accountant
The Securities and Exchange Commission announced that it has selected a new acting chief accountant, James L. Kroeker. He will oversee accounting interpretations, international accounting matters, and professional practice issues. Kroeker replaces Conrad W. Hewitt, who retired from government service on Monday.
Tweedie: IASB Yielded to Political Pressures
Was Sir David Tweedie, chair of the International Accounting Standards Board, yielding to political pressure in October when IASB allowed banks to move assets out of the fair value category retroactively to July 1, 2008, a move that Moody’s said allowed banks to cherry pick certain assets and avoid recognition of markdowns?
By Tweedie’s own admission: “Yes.”
This Joke's on You, Bernie
Need a laugh today? Watch this YouTube video of Bernie Madoff at a 2007 roundtable explaining how the stock market functions. Madoff also postulates that the industry is overregulated.
His explanation of investing, punctuated by a constant nervous tic and wild gesticulations, may contain more irony than a town council meeting held by anarchists. Click the screenshot to go to the video.
A few choice quotes:
"It's impossible for a violation to go undetected."
"By benefitting one person, you're disadvantaging another person."
"The big money made on Wall Street is through taking risks."
Madoff's Other Victim: The Hedge Fund Industry
The hedge fund realm is bracing for (another) exodus come March, aggravated by the fallout from Bernard Madoff's alleged Ponzi scheme and compounded by mass withdrawals by investors in November and December.
Bloomberg News' Matthew Lynn said that some hedge funds are limiting withdrawals, which he believes will doom the industry: