We’ve raised the possibility Greece’s sovereign debt burden is far lower than the headline figures — and the potential significance of this — in previous posts. Now it’s time to dig in.
(The idea was brought to our attention by Paul Kazarian, whose Japonica Partners has a position in Greek government bonds and would stand to profit from a compression in risk premiums. His interest in the outcome doesn’t necessarily mean he’s wrong.) Read more
The European Securities and Markets Authority has squinted at the amount of goodwill on the balance sheets of 235 listed European companies, and it’s not happy with what it found. Not only were the companies seemingly too optimistic, given prevailing economic conditions, but some of their disclosures contained insufficient detail. It’s the sort of thing that makes it hard for investors and analysts to understand what’s going on.
That’s the boring explanation. Let’s go over it again, but this time with pictures! Read more
Heavily processed foods are generally unhealthy. Those looking after their waistline may wish to read ingredients lists and follow food journalist Michael Pollan’s advice: “Don’t eat anything that your great-great grandmother would not recognize as food.”
Could the same be said of financial accounts? That is: “Don’t trust anything your grandparents wouldn’t recognise as a justifiable line item.” Read more
The UK’s Office for Budget Responsibility is in desperate need of a graphic designer…
Here’s a distinction you tend not to see on the front pages of the sovereign crisis…
Cash-based sovereign accounting: recognising a cost only when cash changes hands. Accrual-based: recognising a cost when it’s incurred in the first place. Read more
Compare and contrast Tuesday’s statements from Barclays and Citigroup on the sale of the Egg UK credit card portfolio.
First, Barclays: Read more
This is meant to be the year of accounting convergence.
You’re probably already yawning by now — but wait! This is important. Read more
The US accounting standards board – the FASB – voted to change mark-to-market rules yesterday, in a widely-expected move.
The analysts – and pundits – have had plenty of time to formulate their opinions on the subject; here’s a selection. Read more