Posts tagged 'IFRS'

What if Greece got massive debt relief but no one admitted it? (Part 2)

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

Goodwill for all European companies

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

Overly processed accounting — who eats this stuff?!

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

Accruing an old lady

The UK’s Office for Budget Responsibility is in desperate need of a graphic designer…

 Read more

Accruing better sovereign credit

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

Accounting for Egg

Compare and contrast Tuesday’s statements from Barclays and Citigroup on the sale of the Egg UK credit card portfolio.

First, BarclaysRead more

2011 is the year of accounting ‘condorsement,’ Fitch says

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 international FAS 157-e

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