Thursday, May 14, 2009

Fair Value Accounting Leads to Volatility; Volatility Leads to Litigation

Posted by Plus Master at 7:05 AM
 

Did fair value accounting standards, issued by the Financial Accounting Standards Board, and required to be applied for fiscal years ending subsequent to November 2007, hasten the onset of the current economic and financial crisis? What will be the impact of these standards on legal and accounting activities in the future? What will be the impact of FASB's April 2009 rule change giving financial institutions more flexibility in valuing assets?

Steven M. Packer and Stanley V. Todd, members of the Tax Accounting Group at Duane Morris, tackle these questions in an article that appeared in The Legal Intelligencier.

You can see the full article by clicking here.
POSTED IN Directors and Officers Accountants

1 Responses to "Fair Value Accounting Leads to Volatility; Volatility Leads to Litigation"

PLUS BlakeH Says: May 21, 2009 (11:05PM) The new rules of FASB have pros and cons. Many bankers were pleased, since it's now easier for them to take write downs that might otherwise have hurt their financial results. On the other hand the new rules will reduce transparency for investors. Recession isn’t over yet, thus we need to have a proper management of our money. Wise spending is needed. We should refrain from spending beyond to what we earned, it will just lead to deficiency of our money or capital whatever maybe. Try to put money away into savings, and don't add any more debt if you can help it – this means no credit cards. Use a payday loan if you have to. An alternative financial plan that acts as debt relief and puts more money in your pocket is ideal.
Please Leave a Comment

PLUS Community Disclaimer

PLUS encourages the use of these groups for the exchange of information and ideas, however, comments or material posted by others may be removed if PLUS determines it is inappropriate or offensive. User-generated content does not represent the opinion of PLUS or its members but is the sole responsibility and opinion of the user generating such content. PLUS Blog has no control over and does not endorse linked website(s), cannot guarantee the accuracy of any information found by following said links or the correctness of any analysis found therein and should not be held responsible for it or the consequences of a user's reliance on that information.