Views on the integrity of global capital markets
In October 2011 the Financial Accounting Standards Board (FASB) issued proposed guidance on how to value investment properties. But instead of providing guidance on how to measure investment properties held by any entity, the FASB created a new type of entity — the so-called “investment property entity” (IPE). Read more
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Mohini Singh, ACA, examines why fair value is the most relevant measurement basis for all real estate properties — not just investment properties, as proposed by FASB. Read more
4 Comments While CFA Institute believes that the FASB and IASB proposals for investment company accounting are a step in the right direction, digging into the details of the proposed changes uncovers some problematic issues. Read more
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Opponents of fair-value accounting were particularly voluble during the subprime mortgage-triggered credit crisis. But did they overstate their case? Vincent Papa, PhD, CFA, takes a look at the evidence. Read more
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In a recent Reuters article, the Bank of England’s Andrew Haldane called for a “radical rethink” of accounting rules for banks. While it’s true that banks (especially large ones) pose a significantly greater systemic risk than other industries, Vincent Papa, CFA, finds it hard to see how new bank accounting rules would benefit investors. Read more
Leave a Comment As New Year’s resolutions are contemplated around the world, we have one suggestion for the accounting standard setters — let this not be a year of moving one step forward and then two steps back when it comes to serving … Read more
6 CommentsWe are in the midst of one of the most acrimonious debates over accounting rules in decades. What is at stake is whether banks will have to value their loan portfolios and report the results on their financial statements. Currently, … Read more
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