New Accounting Rules for Off-Balance Sheet Assets

Posted by & filed under Accounting Principles, Advanced Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting.

New accounting rules governing off-balance-sheet transactions went into effect for most companies in January 2010. The rules force companies to put assets, like mortgage servicing rights, back on their balance sheets. Questions: 1. What financial accounting standards (FASs) are forcing companies to put such assets back on their balance sheets? 2. What are some of… Read more »

Getting to the Bottom of Repurchase Agreements (or Repos)

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Financial Accounting, Fraud Accounting.

The Securities and Exchange Commission is asking public-company CFOs for better disclosures and additional information about repurchase agreements, or repos, which are the same├é┬átransactions that Lehman Brothers used to make its balance sheet look healthy before the investment bank collapsed into bankruptcy. Based on company responses, the SEC could ask issuers to amend their filings… Read more »

Walking a Tight Wire in the Kraft – Cadbury Merger?

Posted by & filed under Advanced Accounting, All Articles, International Accounting.

Kraft Foods, Inc. Chief Executive Officer, Irene Rosenfeld, is walking a tight wire in negotiations to buy Cadbury Plc. She is trying to please Cadbury investors, but is receiving criticism by Kraft investors, like Warren Buffet, who says the takeover is diminishing its merit by paying too much stock for the deal. The current cash-stock… Read more »