Magic Tricks on the Corporate Books Nov 3, 2009
New discretionary accounting rules have made it easier for companies to engage in such behavior ... But corporate accountants, who have a lot of leeway under the accounting rules, may be delaying writedowns until the last possible moment. (BusinessWeek)
Revealed: our biggest power generator's $400m loss Nov 3, 2009
Until now Macquarie's loss had been hidden from taxpayers, the company citing ''accounting rules'' as the reason for the loss ... Macquarie Generation's managing director, Grant Every-Burns, blamed complex accounting rules for the losses. (Sydney Morning Herald -- Business)
Georgia builders appeal for federal help Nov 3, 2009
"We also believe that aggressive interpretation of certain regulatory policies and accounting rules has contributed to the closures," said Joe Brannen, the president of the Georgia Bankers Association. Two builders explained how they were denied loans from as many as eight banks for construction financing on houses that had already been sold. (The Augusta Chronicle)
UBS Swings to Q3 Net Loss, Sees Outflows Nov 3, 2009
The credit charges relate to accounting rules used by most lenders, under the terms of which banks can book non-cash gains when the value of their debt falls, as it theoretically needs less money to buy back its own debt. When markets recover, these gains are reversed into losses. (SmartMoney)
Bharti profit up 13% but lags estimates Oct 31, 2009
21 billion rupees (US$495mil) under US accounting rules in its fiscal second-quarter ended September from 20. 46 billion reported a year earlier. (The Star Online, Malaysia -- Business)
MetLife Posts Third-Quarter Loss Oct 30, 2009
Under accounting rules, when its own credit spreads improve, MetLife has to record a decline in the value of insurance liabilities. This also led to a loss in the second quarter. (ABC News -- Wire)
Bharti Airtel Q2 net up 13% at Rs 2,321cr Oct 30, 2009
The revenue, as per the US accounting rules, grew by 9% to Rs 9,846 crore, Bharti Airtel said today. The company's earnings before interest, tax, depreciation and ammortisation (EBITDA) margin improved to 42. (India Times, India)
Wipro Q2 net up 21% Oct 27, 2009
71 billion rupees ($252 million) under international accounting rules, from 9. 70 billion a year ago. (India Times, India)
Wells Fargo, JPMorgan Benefit From Hedging on Mortgage-Servicing Rights Oct 22, 2009
Under U.S. accounting rules in place since 1995, banks should report the value of mortgage-servicing rights on a fair- market basis, or roughly what they would fetch in a sale. A bank must record a loss whenever it sells MSRs for a price below where theyre marked on the. (Bloomberg -- US)
JAKKS Pacific® Reports Third Quarter 2009 Results Oct 22, 2009
1 million due to the sustained decline in the Companys market capitalization pursuant to the applicable accounting rule, SFAS 142, taken in the second quarter of 2009. Pre-tax non-cash impairment charge of $8. (Yahoo! Wire -- Entertainment News)
Morgan Stanley profitable for first time in a year Oct 22, 2009
That same accounting rule allowed Morgan Stanley to book a $9. 7 billion gain during the third quarter last year as its debt plummeted in value amid fears it might collapse, as its competitor Lehman Brothers did. (New York Post -- News)
Apple Reports Its Most Profitable Quarter Ever Oct 21, 2009
During a conference call with investors, CFO Peter Oppenheimer said that on Sept. 23, the company had been granted approval by the Financial Accounting Standards Board (FASB) to change its accounting rules, so it can realize most of the revenue from iPhone and Apple TV sales immediately. Still, Oppenheimer added the company isn't sure when it will do that. (SmallBusinessComputing)
The US dollar could sure use $52B in support Oct 20, 2009
Last Updated: 2:26 AM, October 20, 2009. Posted: 1:53 AM, October 20, 2009. (New York Post -- News)
Apple's on a roll, but iPhone sales pivotal Oct 18, 2009
One wrinkle is recently approved accounting rule changes that would allow Apple to record much more revenue from iPhones when they are sold, rather than over time. Apple, which supported the rule change, will not say when it would move to adopt the new standard, but many analysts expect it to see the change take effect from the December quarter, its first of fiscal 2010. (Yahoo News -- Press Releases)
Slim pickings, no appetite Oct 15, 2009
Even those banks that are in good shape may want to hold back amid uncertainty over capital-adequacy requirements and accounting rules for off-balance-sheet assets. But companies are also seeking fewer loans, as they think twice before hiring or investing in equipment. (The Economist)
Stock questions? Ask Matt Oct 13, 2009
Thanks to complex accounting rules, it's usually not that simple. There are strict revenue recognition rules that govern how companies can book revenue. (USA Today -- Money)
Writedowns on Mortgage-Collection Servicing Make Even JPMorgan Vulnerable Oct 12, 2009
Under U.S. accounting rules in place since 1995, banks are supposed to report the value of their mortgage-servicing rights on a fair-market basis, or roughly what they would fetch in a sale. A bank must record a loss whenever it sells MSRs for a price below where theyre marked on the. (Bloomberg)
Independent firms fill void Oct 9, 2009
Our leases meet FASB accounting rules and the IRS rules to qualify as operating leases. Leasing also offers off-balance sheet financing for businesses which can make your financials look stronger. (San Antonio Business Journal, TX)
NY jury hears Vivendi class action case Oct 7, 2009
He said Vivendi will prove it has always had enough cash and credit to pay its bills, that it always has followed accounting rules and that the decline in its stock was not caused by the disclosure of any hidden liquidity risk. He presented to the jury a chart showing that the company in December 2001 had more than $6 billion in cash and credit available to it to meet its obligations. (Muscatine Journal, IO)
John Mack Touts Watchdog Only Banks Will Love Oct 7, 2009
Yet the move to international accounting rules shows how difficult global arrangements can be ... Yet it reflects that Japanese companies have large, cross-shareholdings, and they want accounting rules to reflect that. (Bloomberg -- Columnists)
The FDIC's Gift to Banks Oct 1, 2009
Under accounting rules, banks record prepayments as if they had used the cash to buy an asset in this case, FDIC insurance. Different types of assets have different capital requirements depending on their risk. (BusinessWeek)
Can an Accounting Trick Rescue the FDIC? Oct 1, 2009
But in a quirk of accounting rules, the banks won't have to expense the upfront payments this year, even though they will be handing over the cash in the next few months in amounts that could run into the billions of dollars for some banks. The FDIC says the move will solve its liquidity problems the FDIC officially slid into the red this week for the first time since 1991. (Time.com)
Sylvastate's profit slides Oct 1, 2009
Listed investment company Sylvastate has posted an 87 per cent decline in after-tax profit to $532,000 for the 12 months to August 31, 2009, after its investment portfolio generated a flat return for the period and accounting rules forced it to record impairment charges against falling stock prices. But the company's equity portfolio did beat the broader market and it has tipped better times ahead for investors bolstered by an improving outlook for the domestic economy and higher dividend... (Sydney Morning Herald -- Business)
Bond yields ranged; auctions eyed Oct 1, 2009
MUMBAI: Federal bond yields were rangebound on Thursday as disappointment on the absence of easing in accounting rules for banks' debt holdings persisted ... Federal bond yields were rangebound on Thursday as disappointment on the absence of easing in accounting rules for banks' debt holdings persisted. (India Times)
Accounting rule change to help smartphone makers Sep 25, 2009
SAN FRANCISCO A change to U.S. accounting rules approved by regulators Wednesday (Sept ... Current accounting rules require these companies and other to spread out the recognition of this revenue over a multi-year period, as software vendors are required to do. (EETimes)
New accounting rules mean boost to Apple, others Sep 25, 2009
Regulators approved changes to accounting rules Wednesday that in the short term will make sales and profits seem higher at technology companies selling certain gadgets that blend hardware and software ... Existing accounting rules require many software companies to divide up sales over the length of licensing contracts; until now, companies with hybrid hardware-software products were also guided by those standards ... The changes to the accounting rules go into effect in the middle of next... (Yahoo News -- Technology)
Accounting rules boost Apple Sep 25, 2009
New accounting rules mean boost to Apple, others. Article:New accounting rules mean boost to Apple, others:/n/a/2009/09/23/financial/f151913D49 ... DTL Article:New accounting rules mean boost to Apple, others:/n/a/2009/09/23/financial/f151913D49. (San Francisco Chronicle -- Technology)
U.S. Accounting Change Might Help Tech Companies Sep 24, 2009
SAN FRANCISCO (Reuters) - U.S. accounting rule makers approved a change in reporting regulations on Wednesday that might benefit technology companies such as Apple Inc , allowing them to recognize more revenue when products are sold ... Previously, such devices were governed by accounting rules that applied to software. (ABC News -- Wire)
Bond yields lower ahead of buyback Sep 24, 2009
Traders said expectations that the central bank may ease accounting rules to enable banks to minimise mark-to-market losses was also helping sentiment. "If it happens, then we can see further improvement in demand," said a trader with a state-run bank. (India Times)
G-20 Numbers Ninnies Have No Place in This War Sep 23, 2009
Sept. 23 (Bloomberg) -- Heres one thing that leaders of the nations dont need to work on when they meet in Pittsburgh this week -- accounting rules ... This is a continuation of the political pressure that has been brought to bear over the past year on the two main bodies that set accounting rules, the in the U.S. and the London-based , which sets rules used by companies in more than 100 countries ... Bair issued a veiled warning when she said the FASB to carefully consider possible... (Bloomberg -- Columnists)
Bond yields higher on supply concerns Sep 22, 2009
Dealers said the rise in yields could be capped by expectations the central bank would not starting tightening policy for some time, and on expectations that accounting rules on hold-to-maturity accounts could be changed for banks, which would support demand for debt. Volumes were a moderate 31. (India Times)
Analyst Picks and Pans: E*Trade, Discover Financial, DreamWorks Sep 15, 2009
Moreover, a change in accounting rules starting in the first quarter of 2010 will "disproportionately" benefit credit-card lenders' earnings as credit conditions recover, Carcache said. Carcache raised his estimates for the year to a loss of 45 cents per share from a loss of 78 cents per share. (BusinessWeek)
Rupee higher as stocks gain Sep 15, 2009
3 percent, with financial issues such as State Bank of India and ICICI Bank among the gainers on hopes for easier accounting rules for bond holdings. Foreign portfolio flows into and out of local stocks set the direction for the rupee. (India Times)
America's War Within: Homeland Security marked by waste, lack of oversight Sep 13, 2009
jbhiker wrote on Sep 11, 2009 1:52 PM:" Well Cogito, you need to do some reading. The funds for all those creditless- people were made available by SEC Chairmen Harvey L. Pitt and William Donaldson. Both of them resigned in disgrace. Donaldson is the one who relaxed the accounting rules. While he pretended to force disclosure in accounting, Lehman Brothers, AIG and Bernie Madoff were busy robbing us all blind. ". Cogito wrote on Sep 11, 2009 8:48 AM:" Jbhiker, the previous administration tried... (Lodi News Sentinel, CA)
Beware Bankers Spinning Story of Smooth Results Sep 11, 2009
Sadly, some accounting rule makers may be ready to appease banks and the politicians who back them ... This battle over financial reporting is playing out in the debate over proposed accounting rules for how banks value things such as loans and bonds. (Bloomberg -- Columnists)
Revenue leaks 5% at KWV, but wine sales fill up in export markets Sep 11, 2009
Online Edition Powered By IOL. DisplayAds('SkyLEFT',17,). (Business Report, South Africa)
Green shoots may still wither Sep 11, 2009
Instead of dealing with the problem of leverage, the debt has also merely been rolled forward through a variety of clever warehousing structures and the manipulation of accounting rules. Governments may also be impeding necessary adjustments. (Sydney Morning Herald -- Business)
ArvinMeritor Enters into New, Two-Year U.S. Receivable Securitization Agreement Sep 9, 2009
In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; whether we will have sufficient liquidity as we continue to be affected by declining vehicle production volumes; the financial condition of the company's suppliers and customers, including potential bankruptcies; possible adverse effects of any future... (PR Newswire)
5 weeks on the brink: Reliving meltdown of 2008 Sep 8, 2009
It finally did pass, and was swiftly signed into law on Oct. 3, after Republicans won provisions to raise the amount of personal bank deposits insured by the government and an easing of accounting rules for banks. It got ugly anyway. (The Pantagraph newspaper)
Lawmakers hope fall brings health care compromise Sep 6, 2009
The nonpartisan Congressional Budget Office predicted in July that the measure would add $239 billion to the federal deficit over a 10-year span -- though Democrats' pay-as-you-go legislation enacted new accounting rules that disregard extra Medicare payments to doctors, resulting in a $6 billion surplus. "We're going to pass this at some point, and we're trying to get costs under control," Mr. Murtha said, although he later added, "I'm not sure I can predict it can be passed this year.". (Pittsburgh Post-Gazette, PA)
Bernanke still blind to danger Sep 3, 2009
Accounting rules were changed to allow for the further camouflage of toxic assets held by the banks. Bernanke himself engaged in some mafioso behavior in forcing Bank of America to absorb an ailing Merrill Lynch. (Asia Times Online)
Banks Need to End $1 Trillion Kick the Can Game Sep 3, 2009
Yet regulators, including the FDICs Bair, acknowledge that the new accounting rules are needed. More than that, in a television last week, Bair said if banks had faced stricter treatment for off-balance-sheet vehicles a few years ago, I think there would have been more capital in the system. (Bloomberg -- Columnists)
* High Speed Rail narrows losses on lower overheads Sep 2, 2009
THSRC spokesman Ted Chia (w) attributed the improvement to a recovery in the number of passengers, lower interest rates and changes to the companys accounting rules. Despite the downturn, passenger ticket revenue totaled NT$11. (Taipei Times, Taiwan -- Business)
Analysis: Where Vantus went wrong Aug 30, 2009
Under new federal accounting rules, Vantus was also forced to write down the value of the securities. Because of their complex nature, the bank was forced to hire an independent consulting firm to determine their value through a process that included ''quantitative modeling and significant judgement. (Sioux City Journal, IO)
The good, the bad and the bizarre Aug 29, 2009
Macquarie Airports is another listed company in the retail business and under Australia's utterly inconsistent accounting rules, they have been allowed to progressively double the book value of Sydney Airport to more than $10 billion even though it has never been sold. If MAP can do that, why can't Woolworths write up the value of its huge retail network. (Sydney Morning Herald -- Business)
Bankers Craving Bonuses Fudge Loan-Loss Reality Aug 22, 2009
In that vein, it was encouraging to see the SEC also tell banks that it would be inconsistent with accounting rules if you were to delay recognizing credit losses that you can estimate based on current information and events ... That said, the agency stressed that delaying the recognition of estimated credit losses _ is an inappropriate application of accounting rules ... A big chunk of the differing loss expectations was attributable to accounting rules that allowed bank management... (Bloomberg -- Columnists)
Braley defends health bill during open forum Aug 21, 2009
Braley told him the House bill ensures an even playing field for the private sector by requiring a government health insurance plan to pay for itself and use identical accounting rules. Janice Goodman, an emergency room nurse from Marion, said she doesn't understand why so many people fear doctors will somehow encourage an early death by discussing care options. (Waterloo Courier, IO)
Freddie Mac May Face SEC Suit For Errors Aug 20, 2009
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)
Insurers' Biggest Writedowns May Be Yet to Come Aug 20, 2009
This brings us to the odd accounting rules for the insurance industry, including , which uses Honest Abe as its corporate. Look at the asset side of Lincoln Nationals , and youll see a $10. (Bloomberg -- Columnists)
Scholes Says Banks Should Provide Fair-Value Data on Their Illiquid Assets Aug 19, 2009
Accounting rules now let companies recognize most loan losses only when management judges them probable. Applying fair value to loans would require earlier recognition of losses. (Bloomberg)
Oxley Elected Chairman of Ethics Resource Center Aug 19, 2009
were the primary sponsors of the 2002 Sarbanes-Oxley law that tightened corporate accounting rules after scandals that engulfed Enron Corp., WorldCom Inc. and other big corporations. Many business executives were critical of the law, saying it included provisions that made U.S. companies less competitive in the global economy. (ABC News -- Wire)
Aberdeen Global Income Fund, Inc. Announces Payment of Monthly Distribution Aug 16, 2009
Under U.S. tax accounting rules, the amount of distributable income for each fiscal period depends on the actual exchange rates during the entire year between the U.S. dollar and the currencies in which Fund assets are denominated and on the aggregate gains and losses realized by the Fund during the entire year. Therefore the exact amount of distributable income for each fiscal year can only be determined as of the end of the Fund's fiscal year, October 31. (PR Newswire)
Beware `Horror Flick Monster' Mark-to-Market Accounting: Chart of the Day Aug 15, 2009
Like a horror flick monster that just wont stay dead, FASBs accountants are proposing to expand the application of mark-to-market accounting rules across the board to include all financial assets, including regular loans, Wesbury said. The CHART OF THE DAY, fashioned from one Wesbury is presenting to investors, tracks the performance of the Standard & Poors 500 Index since the Securities and Exchange Commission and FASB clarified the meaning of the rules in September 2008. (Bloomberg)
Hillsborough Resources Reports Q2 2009 Results Aug 15, 2009
David J. Slater, President and CEO, said, "Quinsam and PRC have performed very well in the second quarter and year to date. The new contract with Vitol was extremely beneficial to the Corporation in terms of settling outstanding debt and committing long term international sales. It is very unfortunate that, due to applicable accounting rules, the true economic effects of the transaction cannot be presented in current income. In addition, the market outlook for thermal and metallurgical coals... (CCNMatthews Press Releases)
Warren: Banks Are Sitting on Bad Assets Aug 14, 2009
The recent tweaks in mark-to-market accounting rules that allow banks to carry toxic assets on their book at higher than market values have made banks want to hold on to them, Warren says. Thats because selling those assets at actual values would mean banks have to recognize their losses, which would put some banks out of business. (Newsmax)
Lower oil and natural gas prices hurt Barnwell's earnings Aug 13, 2009
Barnwell said the reduction doesn't fairly reflect the present or future value of its energy deposits, and that the accounting rule mandated by the federal Securities and Exchange Commission for all oil and natural gas companies has no effect on its oil and natural gas reserve volumes or production rates. However, the lower prices decreased Barnwell revenues, which fell 63 percent to $7. (Honolulu Advertiser)
Letters to the Editor: On economics Aug 13, 2009
Other government policies that have distorted financial markets, thereby undermining the EMH, include shielding credit-rating agencies from lawsuits, government-sanctioned fair-value accounting rules, enforcing credit-default swaps where there is no insurable interest, mispriced deposit insurance, government-sponsored enterprises, and the over-promotion of home ownership. Minimising these distortions is key to making the EMH an everyday reality. (The Economist)
SWS Group, Inc. Records Investment Impairment in June Quarter, Expects Write-Down Related to Correspondent in September Quarter Aug 13, 2009
Regarding the NYX and USHS investments, Mr. Hultgren said accounting rules require recording the decline in market value through the income statement. He noted, however, that the value of the investments is separate and distinct from the company's operating results and that the adjustment will have no impact on the company's book value. (PR Newswire)
Next Bubble to Burst Is Banks' Big Loan Values Aug 13, 2009
The accounting rules also left open the opportunity for gains-trading, whereby companies post profits by selling their winners and keeping losers on the books at their old, inflated values ... Banks already have the to carry loans at fair value under the accounting rules. (Bloomberg -- Columnists)
'Kyoto' changes ETS treatment of farmers Aug 12, 2009
Canberra would only consider allowing farmers to claim credits when changes to international carbon accounting rules allowed it. "We, the Australian government, have ratified the Kyoto Protocol, the United States government has not," Mr Rudd said, adding they were therefore operating under different "regimes". (Sydney Morning Herald -- Australia)
State Street hints at stiff fines Aug 11, 2009
And under accounting rules, companies are not supposed to set aside reserve funds until they have a good handle on how much money they will have to pay. Even State Street was cagey about how much more money it might have to set aside. (Boston Globe)
Accounting change beneficial to banks Aug 11, 2009
WASHINGTON A controversial change in accounting rules earlier this year has allowed banks to claim billions of dollars in additional earnings simply by tweaking their bookkeeping, greatly enhancing the appearance that the industry is returning to health. A study by an accounting expert found that 45 financial firms reported higher first-quarter earnings because of the change. (Honolulu Advertiser)
Berkshire profit up 14 percent as stocks rebound Aug 9, 2009
Accounting rules require Berkshire to report changes in their value with earnings. Berkshire said the bets will continue to generate "extreme volatility" in earnings. (Yahoo News -- Press Releases)
AIG posts first profit since 2007; shares jump Aug 8, 2009
7 billion in unrealized gains on investments from improving market conditions and the adoption of new accounting rules. That helped push the value of AIG's total equity up nearly 17 percent to 62. (Yahoo News -- Press Releases)
Freddie Mac Reports First Profit in Two Years Aug 8, 2009
1 billion increase in equity due to the adoption of accounting rules that govern how it must recognize losses. It also had a $4. (ABC News -- Wire)
