Views on improving the integrity of global capital markets


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.

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.

Corporate Governance Roundup: New Rules in Canada, Switzerland, U.K., and U.S.; Proxy Voting Innovation in Turkey

Updating Canada’s rules for director elections, Indonesia’s Bumi drama, Turkey’s electronic proxy voting system, and ISS’ proposed policy changes.

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.

Continued Concern for “Going Concern” Reporting

There is little question that, in the wake of the credit crisis (think Lehman Brothers and the AIG bailout) and the MF Global debacle, advance warnings about a company’s failing financial health would be welcomed by investors. One such… READ MORE ›

Investment Property “Entities” — Seriously? Measure All Real Estate Investments at Fair Value

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.

Investment Company Accounting: FASB, IASB Proposals Step in the Right Direction, but …

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.

Four Years Post-Crisis: Investors May Obtain More Information on Level 3 Fair Value Measurements in First Quarter 2012

In the aftermath of the financial crisis, we saw protests against the use of fair value to measure financial instruments as well as complaints regarding how fair value measurements were derived. Sandra Peters, CFA, examines how regulators are responding to concerns.

Coming Soon to an Income Statement Near You: Comprehensive Income

Did Bank of America have a profit or loss in 2011? Finding the answer requires digging into the company’s financial reports. While the net income stares you down on the face of the income statement, the loss hides behind a curtain known as “comprehensive income.” But that is about to change.

A New Year’s Resolution for Accounting Standard Setters: Real Progress on Addressing Investor Needs

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… READ MORE ›

Investors Weigh in: Basel Roundtable Discusses Practices for Improving Risk Disclosures

On 9 December, CFA Institute took part in a roundtable on financial institutions risk disclosure that attracted more than 70 participants and observers from constituencies considered pivotal in shaping observed financial reporting practices. They included accounting and audit standard… READ MORE ›

Investor Priorities and Shaping the IASB Agenda for the Next Decade

The last 10 years have seen wide-ranging and intense activity on the accounting standard-setting front, including the convergence project to reduce existing differences between international accounting standards and U.S. GAAP as well as financial crisis-related projects. The last decade… READ MORE ›

The Current State of Financial Instrument Accounting and Reporting: Why Should Investors Care?

On 20 September, CFA Institute conducted a webcast on “The Current State of Accounting and Reporting for Financial Instruments.” Aimed at providing an investor-focused overview of FASB and IASB projects on financial instrument accounting, the discussion comes… READ MORE ›

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