Cyberonics Reports Strong Sales Growth and Profitability in Fiscal 2009 Second Quarter Nov 20, 2008
Although the gain on early extinguishment of the convertible debt is included in the calculation of net income, as per the applicable accounting rules it is excluded from the calculation of net income per diluted share. Balance sheet and cash flow. (PR Newswire)
US, Indonesia Link Up On Forest Carbon Credits Nov 20, 2008
A key part of the project was applying newly released accounting rules governing voluntary market REDD projects under the globally recognised Voluntary Carbon Standard. "We need to synchronise all the information against the standard and then have it independently verified," Sun said, adding he hoped to complete the verification by around June next year. (Planet Ark, United States)
How David Dodge would fix the financial system Nov 19, 2008
The overzealous enforcement of inappropriate accounting rules on financial institutions has helped amplify market gyrations in the past eight years and should be stopped, former Bank of Canada governor David Dodge contends. The so-called mark-to-market rules exacerbate the volatility of reported profits among financial institutions, and this creates incentives for excessive risk taking on the upswing and excessive credit contraction on the downswing, Mr. Dodge, who headed the central bank from... (Globe and Mail -- Business)
Consumers cut back sharply on spending Nov 18, 2008
He put forward a list of modest reform proposals including making accounting rules more transparent but stopped well short of the global market regulator being sought by some European nations. Treasury Secretary Henry Paulson said he expected the meeting would address some important issues raised by the crisis, such as how credit-rating agencies failed to properly assess risks and how to develop better ways to monitor complex financial instruments known as derivatives, including credit default... (Madison Daily Leader, SD)
Write-downs: A painful way to revisit big deals Nov 18, 2008
Several factors, including accounting rules that require companies to test assets on their books for impairment, are driving the disclosures. So too is the stepped-up oversight of accountants that resulted from the Enron and WorldCom corporate scandals. (International Herald Tribune -- Business)
More writedowns loom for resilient Macquarie Group Nov 18, 2008
Reconfigured to conform with US GAAP accounting rules, Macquarie has assets of $135 billion and the same $10. 3 billion capital wellspring, for gearing of 13. (Sydney Morning Herald -- Business)
IIF urges change to accounting rules to stem financial crisis Nov 18, 2008
by Xinhua correspondent Li Baojie. BEIJING, Nov. 17 (Xinhua) -- The United States should consider changing the way it accounts for illiquid assets to help stem the financial crisis, a senior official of the banking group Institute of International Finance said (IIF) here Monday. (Xinhuanet, China)
Economic Summit Vows Action, but Takes Few Steps Nov 17, 2008
To that end, the leaders called for such mundane things as "supervisory colleges" where financial regulators can compare market notes across countries, better cooperation between nations on regulations, the eventual standardization of accounting rules governing how companies can value potentially tricky assets, and new attention to credit-rating agencies. The leaders also supported expanding the membership of the Financial Stability Forum, a group that has been examining the causes of the... (Fox News)
Summit leaders approve economic action plan Nov 17, 2008
World leaders holding an emergency meeting to combat the economic crisis agreed Saturday to a far-reaching action plan that, over the next 41/2 months, would begin to reshape international financial institutions and reform worldwide regulatory and accounting rules. Images. (San Francisco Chronicle -- Politics)
Africa: G20 Leaders Vow Action to Revive Global Economy Nov 17, 2008
By then, finance ministers will deliver a catalogue of measures designed to rein in risky investing, including better regulation of financial markets, revised accounting rules and an assessment of the compensation of bankers. Despite the lack of substance, leaders claimed they had accomplished much just by gathering in such large numbers to grapple with the world's financial panic and pledging to work together to contain it. (allAfrica.com)
World crisis plan criticized as new trading dawns... Nov 17, 2008
The G20 statement said that all financial markets, products and participants would be subject to supervision, vowed tougher accounting rules, a review of compensation practices and greater cooperation between national regulators. Even the long-running Doha round of free-trade talks was given a new lease on life. (The Drudge Report)
In desperate need of repair Nov 17, 2008
BRIAN MILNER AND BARRIE MCKENNA AND HEATHER SCOFFIELD. From Saturday's Globe and Mail. (Globe and Mail)
The Idiots Are In Control Of The Village Nov 17, 2008
Obama should be happy with the Marxist approach: America is required to hand over free market capitalism to hard-hitting, blatant accounting rules, making America liable, not just to investors, but controlling regulators, who will govern world finances ... The summit, which intends to place accounting rules on international company s assets, will set statutes on Americans if Washington gains complete control over U.S. banks and Detroit. (Human Events Online)
SEC okays three firms as market makers Nov 17, 2008
" Also significant at the summit: the inclusion of a far broader range of countries than the elite, old-guard group that usually holds such summit meetings. "Emerging market countries were not the cause of this crisis, but they are among its worst affected victims," declared Indian Prime Minister Manmohan Singh. Leaders from 21 nations and four international organisations attended the emergency summit that was held as Washington was blanketed in a gray mist and which took on a workaday feel... (Guardian News, Nigeria)
Shake-up ahead for world financial system Nov 16, 2008
World leaders holding an emergency meeting to combat the economic crisis agreed Saturday to a far-reaching action plan that, over the next 4 1/2 months, would begin to reshape international financial institutions and reform worldwide regulatory and accounting rules. The leaders' 11-page statement spoke of broad principles, leaving the details to be worked out by lower-level aides before another summit meeting in April, after Barack Obama assumes the presidency. (MSNBC -- International)
Transcript: Bush Addresses World Financial Summit Nov 16, 2008
Transparency is very important so that investors and regulators are able to know the truth--considered improving accounting rules, so that investors can understand the true value of the assets they purchase. We agree that we need to improve our regulations and to ensure that markets, firms, and financial products are subject to proper regulation and oversight. (Forbes -- Business)
SFSB, Inc. Announces Results for the 3rd Quarter of Fiscal 2008 Nov 15, 2008
President, Chairman and CEO, Phil Logan, stated: "We believe this impairment is related to the continuing uncertainty in spreads in the bond market for mortgage related securities. This uncertainty has negatively impacted the market value of the securities in the fund and thus the net asset value of the fund itself. While the majority of the underlying securities in the fund continue to carry investment grades and acceptable market yields, current accounting rules and related SEC guidance... (PR Newswire)
First Federal Bankshares, Inc. Reports Financial Results For Fiscal First Quarter 2009 Nov 15, 2008
The recent clarifications of the "mark-to-market" or "fair value" accounting rules resulted in the Company incurring additional accounting and consulting costs. The provision for loan losses for the three months ended September 30, 2008, was $713,000. (PR Newswire)
Global Financial Fix Nov 15, 2008
WASHINGTON World leaders moved toward agreement Friday on an early warning system for financial calamities, a commitment to tougher accounting rules and other modest steps to begin restoring stability in a crisis threatening the livelihoods of billions of people around the globe. Nearly two dozen leaders met in Washington on in the largest gathering of its kind here in nearly a decade. (Fox News)
Tougher rules take shape at discussions Nov 15, 2008
WASHINGTON --- World leaders moved toward agreement Friday on an early warning system for financial calamities, a commitment to tougher accounting rules and other modest steps to begin restoring stability in a crisis threatening the livelihoods of people around the globe. Nearly two dozen leaders met in Washington on Friday in the largest gathering of its kind there in nearly a decade. (The Augusta Chronicle)
Ben's Battle Against Debt Deflation Nov 15, 2008
This is all just cause for the incoming Obama administration to waive the accounting rule that forces banks to mark the assets on their balance sheets to market and recognize massive write-downs--even if there is no functioning market available. If it doesn't happen, expect the bailout machine to roll on as one $700 billion facility follows after another. (Forbes)
Economic powers gather for summit Nov 15, 2008
Welcome to The Sydney Morning Herald. November 15, 2008 - 11:05AM. (The Age, Australia -- World)
Meeting's Key Decision May Be to Keep Talking Nov 15, 2008
The summit meeting is also likely to address executive pay and accounting rules. But an official cautioned that the issues would not be addressed in detail in the communiqu. (Atlanta Journal-Constitution -- Business)
World leaders tackle woes Nov 15, 2008
Among those is a commitment to more effective accounting rules, such as those governing how companies value their assets -- a crucial topic when the rise of risky, murky financial products are seen as largely responsible for triggering the current crisis. Ahead of the weekend gathering, a White House group also strengthened oversight of complex financial instruments -- derivatives and credit default swaps, a type of corporate debt insurance. (Pittsburgh Post-Gazette, PA)
World leaders report economic summit progress Nov 15, 2008
In an effort to avoid surprise calamities like the one now sweeping the globe, the assembled leaders were expected to focus on a commitment to tougher accounting rules and greater transparency ... That would included more effective accounting rules governing how companies value their assets, a weakness seen as partly responsible for the current financial crisis. (USA Today -- Money)
Risky-Business Sector May Gain In Time Of Rising Business Risks Nov 15, 2008
Business risks can cover a wide range, everything from complying with Sarbanes-Oxley accounting rules to import regulations and product safety laws. GRC management software organizes compliance programs. (Investors Business Daily)
A Worldwide Rush For Tougher Financial Rules Nov 15, 2008
(WASHINGTON) World leaders prepared Friday to adopt an early warning system for financial calamities, a commitment to tougher accounting rules and other modest steps to try to prevent future crises like the one ... To do so, the leaders were expected to endorse more effective accounting rules governing how companies value their assets, a weakness seen as partly responsible for the current financial crisis. (Time.com)
Bush defends capitalism ahead of summit Nov 14, 2008
He spelled out his prescription, which includes tougher accounting rules and more modern international financial institutions ... --Bolstering accounting rules for stocks, bonds and other investments so investors have a clearer sense of the true value of what they buy. (CNN -- International)
Banks draw heavy fire from Capitol Hill Nov 14, 2008
Also in a speech in New York yesterday President Bush called the economic crisis "a decisive moment for the global economy," but said it "was not a failure of the free market system. And the answer is not to try to reinvent that system." Rather, he called for steps such as improved market transparency and better accounting rules. One upbeat note yesterday came from Wall Street, where stock markets staged a massive rally, sending the Dow Jones industrial average up 552. (Boston Globe)
World leaders to face off on financial fixes Nov 14, 2008
Bush put forward his own prescription, which includes bolstering accounting rules, reviewing anti-fraud provisions for trading in stocks and other securities, and improving regulatory coordination among countries. But he stopped short of the more far-reaching oversight and regulation that Europeans leaders want. (International Herald Tribune)
Stocks Stage Huge Rebound Nov 14, 2008
Among the specifics, he mentioned improving accounting rules for stocks, bonds and other investments to provide a clearer sense of their value, and requiring credit default swaps -- which are currently unregulated -- to be processed through a central clearinghouse. The G-20 group includes the world's biggest industrial democracies and emerging nations. (WOKR13 Rochester)
President Bush Discusses Financial Markets and World Economy Nov 14, 2008
For example, we should consider improving accounting rules for securities, so that investors around the world can understand the true value of the assets they purchase. Secondly, we must ensure that markets, firms, and financial products are properly regulated. (White House News Releases)
Crisis can't be solved overnight: Bush Nov 14, 2008
Arguing that nations must make their financial markets more transparent, like improving accounting rules for securities, the US president also emphasised on the need to ensure that markets, firms and financial products are properly regulated. "By bringing greater stability to this large and important sector, we would reduce the risk to our overall financial system," he said, and called for enhancing the integrity of the financial markets. (Sify.com, India)
Dow Sees Big Rebound Nov 14, 2008
Among the actions Bush said he would support are improving accounting rules for securities, "so that investors around the world can understand the true value of the assets they purchase.". He said he would also back new rules for credit default swaps, better coordination of regulations between nations and modernization of the World Bank and the International Monetary Fund. (KCRA 3, CA)
Limits of a lame-duck president Nov 14, 2008
Accounting rules must be improved so investors around the world understand the true value of the assets they purchase, he said, and markets must be properly regulated to protect investors against "manipulation and fraud." And he said this renewed emphasis on procedures that were "transparent, accountable and effective" must be applied to the International Monetary Fund and the World Bank as well as Wall Street. But he said it would be wrong to equate the free-market system with "greed,... (International Herald Tribune)
Freddie Mac May Face SEC Suit For Errors Nov 14, 2008
Accounting rules require the company to adjust its income as the value of those instruments goes up or down, even if the company still holds them and hasn't actually realized a gain or loss. The effect of the corrections was to increase past earnings by $5 billion, including $600 million from before 2000. (Yahoo News -- Corporate Reform)
Bush says 'smarter' regulation needed, not more Nov 14, 2008
Accounting rules must be improved so investors understand the true value of the assets they purchase, he said, and markets must be properly regulated to protect investors against "market manipulation and fraud." He said this renewed emphasis on procedures that are "transparent, accountable and effective" must be applied to the International Monetary Fund and the World Bank as well as Wall Street. But he said it would be wrong to equate the free-market system with "greed, exploitation and... (International Herald Tribune -- Money Report)
Economy summit begins Nov 14, 2008
He spelled out his prescription, which includes tougher accounting rules and more modern international financial institutions. But he stopped short of the tighter oversight and regulation that European leaders want. (AZCentral -- News)
Bush sets tone for G-20 Summit Nov 14, 2008
"We should consider improving accounting rules for securities, so that investors around the world can understand the true value of the assets they purchase.". Bush also urged proper regulation on markets, firms, and financial products and enhance the integrity financial markets. (Xinhuanet, China)
MEGA Brands announces return to profitability before non-cash goodwill impairment provision Nov 13, 2008
"Accounting rules require us to take this provision because of the global economic slowdown and the decline in our stock price." Following the end of the quarter, the Corporation decided to significantly downsize operations in the former Rose Art manufacturing facility in Shenzen, China and outsource production to qualified third-party suppliers who already manufacture over 50% of its products by sales revenue ... As a result of the recent deterioration in the global economic environment and the... (Canada Newswire)
The great bond marketcrash of 2009 Nov 12, 2008
The rest of the market is taking Blackstone's Steven Schwarzman's approach of demanding that "market-to-market" accounting rules be reversed immediately. Tough, guys, you were happy enough to have the spurious mark-ups from mark-to-market in good years, which enabled you to pay yourselves fat bonuses without actually having earned anything. (Asia Times Online)
Swiss Life Scraps Profit Target, Buyback, as Market Slump Cuts Investments Nov 12, 2008
The bonds, with a July 1 book value of 15 billion francs, were reclassified using new accounting rules. In October, the insurer cut its equity holdings to ``well below'' 1 percent and ``significantly'' reduced risk on its hedge fund portfolio. (Bloomberg -- Europe)
HSBC's profit rises as US loan losses deteriorate Nov 11, 2008
Like several European rivals, HSBC took advantage of new international accounting rules to reclassify some trading assets as loans, meaning it didn't have to revalue the assets at market-price, which avoided an $835 million hit to pretax profit in the quarter. Europe's biggest bank also benefited from a $2. (MarketWatch)
HSBC's profits up on year despite U.S. hit Nov 10, 2008
Reuters Published: November 10, 2008. Europe's biggest bank HSBC Holdings said its profit in the third quarter was ahead of a year earlier as growth in Asia helped offset almost $5 billion (3. (International Herald Tribune -- Technology)
HSBC profit rises on growth from Asia Nov 10, 2008
HSBC wrote down the value of credit trading positions by $600-million in the quarter, lower than writedowns in the previous two quarters partly due to changes in accounting rules. It followed other banks in reclassifying how some assets are accounted for. (Globe and Mail -- Business)
Will president-elect Barack Obama go along with the G20 confidence trick? Nov 10, 2008
"Supervisory systems must be compatible with financial stability. We need to make sure accounting rules used to evaluate risk take a more medium-term perspective and do not encourage institutions to think that risk is low just because current asset prices are high, or recent asset price volatility has been low," he said. But IASB, at the behest of the Bush Administration and the FSF, had days earlier scuttled its mark-to-market rules for fair value accounting of derivative exposures. (Sydney Morning Herald -- Business)
Berkshire Hathaway profit dips 77% Nov 8, 2008
Accounting rules require Berkshire to regularly report unrealized gains and losses on the contracts. But Berkshire can invest the cash it got up front to enter the contracts. (India Times)
British Airways raises forecast in grim times Nov 8, 2008
The company had a net loss of 42 million, or about $66 million, for its first half, April through September, compared with net profit of 500 million a year earlier, because of changes to accounting rules for valuing assets. Revenue was up 6. (International Herald Tribune -- Business)
EU bailout actions taken since summit Nov 7, 2008
On the same day, the commission said it had adopted the consolidated text of all accounting rules applicable in the European Union (EU). The consolidated version puts together all International Financial Reporting Standards (IFRS) endorsed to date, including the latest amendments made in October, which will enable stakeholders to refer to only one single legal document. (Xinhuanet, China)
Japan Will Relax Rules on Banks' Capital-Adequacy Ratios, Nakagawa Says Nov 7, 2008
The move comes after Nakagawa said Oct. 28 Japan will ease mark-to-market accounting rules that are forcing companies to book losses on illiquid holdings of securities. Mounting losses on securities and the need to increase provisions for bad loans as the nation's economy slows are putting pressure on the capital of banks and their ability to extend loans. (Bloomberg -- Japan)
Bush Goes Full Speed Ahead On Bailout Nov 6, 2008
The plan could include measures aimed at promoting more openness - or transparency - in financial markets, improving "risk management," the procedures that financial institutions follow to detect and protect themselves against risky investment decisions, and bolstering accounting rules, administration officials said Wednesday while briefing reporters on the White House's Nov. 15 summit. While the White House also believes leaders will be able to find some common ground for fighting the worst... (CBS News)
Freddie Mac May Face SEC Suit For Errors Nov 6, 2008
Accounting rules require the company to adjust its income as the value of those instruments goes up or down, even if the company still holds them and hasn't actually realized a gain or loss. The effect of the corrections was to increase past earnings by $5 billion, including $600 million from before 2000. (Yahoo News -- Corporate Reform)
BNP Paribas 3Q profit down 56 percent Nov 5, 2008
BNP Paribas said it did not take advantage of new international accounting rules which would have reduced the amount of mark-downs in the quarter. BNP Paribas' domestic retail banking division, which has 6 million clients and 2,200 branches throughout France, withstood the financial turmoil thanks to a sales and marketing drive that saw the bank open 50,000 new checking and deposit accounts in the quarter, while increasing loans to individuals and businesses. (Atlanta Journal-Constitution -- Business)
Global accounting accord 'on edge' Nov 5, 2008
AN international showdown is looming between the European Union and the body charged with uniting the world under one set of accounting rules. At stake is national pride, international credibility, and the valuation of billions of dollars of assets held by banks around the world. (Sydney Morning Herald -- Business)
BNP Paribas Third-Quarter Net Falls 56% as Bad Loan Provisions Quadruple Nov 5, 2008
Like Paris-based competitor , Prot decided not to use new accounting rules that are less stringent on markdowns. Investment Bank Profit. (Bloomberg -- Europe)
Mohawk Industries, Inc. Announces Third Quarter Earnings Nov 4, 2008
As a result of Mohawk's declining stock price and deteriorating industry conditions, accounting rules required non-cash charges for a preliminary goodwill and other intangibles impairment of $1,216 million net of tax and for a deferred tax asset impairment of $253 million. While our goodwill and other intangibles impairment analysis is not yet complete, we believe the preliminary amount is a reasonable estimate and we will adjust the charge if required. (PR Newswire)
Europe banks, insurers see more writedown pain Nov 4, 2008
UBS, Royal Bank of Scotland and reinsurer Swiss Re all warned on Tuesday they face more writedowns on toxic assets or because of accounting rules in the current quarter, and showed the financial crisis is causing more pain for consumers and businesses. South Africa's Nedbank also forecast no growth in headline earnings for the full-year after a rise in bad debts in the third quarter. (Globe and Mail -- Business)
Mohawk sees 9 percent decline in sales for third quarter Nov 4, 2008
Jeffrey S. Lorberbaum, chairman and CEO said, "We generated strong cash flow from operations of $185 million during the period while our earnings were under pressure from falling demand and higher costs. All of our businesses are focused on reducing overhead costs, managing working capital and enhancing sales and margins. Here's Mohawk's complete news release on its third-quarter earning report: CALHOUN (PRNewswire-FirstCall)-- Mohawk Industries Inc. (NYSE: MHK) Monday announced 2008... (Calhoun Times, GA)
Ryanair shares gain despite profit drop Nov 3, 2008
Accounting rules require Ryanair to record its Aer Lingus stock losses, even through O'Leary is publicly determined to keep building the stake until Ryanair eventually wears down resistance from the two other major Aer Lingus shareholders: the Irish government and Aer Lingus employees. So far, Ryanair has reported Aer Lingus losses totaling 93. (International Herald Tribune -- Technology)
* Nations top airlines hit by lower traffic, high fuel costs Nov 3, 2008
But both CAL and EVAs quarterly losses could also be attributable to their wrong-way bets on fuel prices and a new accounting rule that requires companies to mark-to-market their hedging losses on the quarterly balance sheet. CAL booked an unrealized loss of NT$2. (Taipei Times, Taiwan -- World)
O'Reilly set to sail with APN stake on market Nov 3, 2008
The reason the Irish media group's debts will reduce more than its equity stake in APN is because under Irish accounting rules it must account for all APN's $900 million of debt on its own balance sheet. In the statement, Independent News said it had already received several approaches. (Sydney Morning Herald -- Business)
Societe Generale Profit Falls 84%, More Than Estimates, on Lehman Losses Nov 3, 2008
Chief Executive Officer decided not to use new accounting rules that are less stringent on markdowns, which helped Deutsche Bank AG show an unexpected third-quarter profit ... This profit isn't artificially enhanced by anticipated changes in accounting rules. (Bloomberg -- Europe)
Pension Funds Buck Buyout Bigs Nov 3, 2008
Indeed, buyout companies have been able to hold off writing down the value of their assets because they don't follow the same accounting rules as banks and hedge funds. But this is no panacea and is expected to only postpone the pain, experts said. (New York Post -- Business)
* Hon Hais net income drops 10% in first nine months Nov 1, 2008
The net profit figures included bonus expenses in compliance with a new accounting rule that became effective on Jan. 1. Hon Hai said in a statement released yesterday that revenues grew 27. (Taipei Times, Taiwan -- World)
Barclays Leans On Middle Eastern Investors Nov 1, 2008
Deutsche Bank (nyse: - - ) was able to report a surprise third-quarter profit after utilizing new European accounting rules that helped it avoid large write-downs. Barclays seems willing to pay a high price for retaining its independence. (Forbes)
