Views on improving the integrity of global capital markets

Financial Reporting

U.S. Senator Elizabeth Warren: “Nobody Believes That the Banks’ Books are Honest”

Have you seen Senator Elizabeth Warren’s recent grilling of the heads of the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Commission, and others posted on YouTube?

IFRS Interpretations Committee: More Relevant and Active Than Investors Might Expect

After my first meeting as a member of the International Financial Reporting Standards Interpretations Committee (IFRS IC) in July, it was apparent to me that the activities and decisions of the IFRS IC are more relevant to investors than they might anticipate.

Private Company Financial Reporting: FASB Marches on Without Defining Private Companies or Deciding How They Are Different

On 12 February, the Financial Accounting Standards Board’s (FASB) Private Company Council (PCC) voted to add three projects to its formal agenda to consider how accounting in three topical areas should be differentiated for private companies.

Hewlett-Packard’s $8.8 Billion Acquisition Write-down Just Got A Bit Heavier

Recently the Financial Reporting Council (FRC), which sets the U.K. standards for accounting and auditing, announced that it would open an investigation into Hewlett-Packard’s $8.8 billion write-down of its acquisition of Autonomy.

Bank Financial Reporting: “The Cause Is Hidden, but the Result Is Well Known”

Are you the trusting sort? How about when it comes to trusting banks some six years after the financial crisis? You should consider reading The Atlantic’s recent article “What’s Inside America’s Banks?” on why many in the investment world, and the general public, still don’t trust banks.

Optional Use of IFRS and Private Company Standards: Both Reduce Comparability in U.S. Financial Reporting

Last week, Hans Hoogervorst, chairman of the International Accounting Standards Board (IASB), made the case for the U.S. Securities and Exchange Commission (SEC) to allow the optional use of International Financial Reporting Standards (IFRS) by U.S. publicly listed companies.

Need for Increased Transparency of Derivatives and Hedging Activities in Financial Reports

CFA Institute recently issued a report, User Perspective of Financial Instrument Risk Disclosures Under IFRS (Volume 2), that focuses on the disclosures of derivatives and hedging activities of financial and non-financial institutions.

2012 XBRL in Review: Progress Made but Concerns Remain

Many regulators continue to evaluate and adopt XBRL requirements, while others struggle with the errors included in submissions. Many public companies continue to see XBRL as a cost, while some are recognizing benefits of internalization of tagging.

Unfinished Work: Accounting Guidance for Investment Properties

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).

Enhancing Disclosure of Bank Risks: Investors Have Important Role to Play

The need for better risk disclosures has been evident throughout the financial crisis. From the standpoint of investors and bank counterparties, the ongoing high cost of borrowing alongside difficulties that many banks still face when accessing different funding markets reflect the opacity surrounding bank institutions’ risk profiles.

CFA Institute Asks: Will the U.S. Presidential Election Impact the Economy?

The latest CFA Institute survey of U.S. members poses this question: Will the outcome of the election have an effect on the economy? A larger-than-expected 80% of our survey respondents say that it will have an important impact on the economy going forward.

Financial Statement Disclosures: Standard Setter, Regulator, and Investor Perspectives

CFA Institute recently held a webinar, “Financial Statement Disclosures: Standard Setter, Regulator, and Investor Perspectives,” to discuss the Financial Accounting Standards Board (FASB) and European Financial Reporting Advisory Group (EFRAG) proposals for developing a disclosure framework and improving financial disclosures.

SEC Final Report on 2010 IFRS Incorporation Work Plan: Does SEC Have Will to Find a Way Toward IFRS?

The U.S. SEC recent issued its long-awaited “Final Report on the 2010 Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers.” CFA Institute provides insights and raises important questions for investors to consider.

Reining in Risk: Improve the Transparency of Banking Financial Reports

Vincent Papa, PhD, CFA, examines the link between sovereign debt and bank risk; capital requirements for the banking industry; the need to improve transparency for derivatives; and other systemic risk issues relating to banks.

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