Accounting Brothel Opens Doors for Banker Fiesta: Jonathan Weil
Source: http://feedproxy.google.com/~r/YourFinancialFuture/~3/Eq-MFNnQfq8/Posted on Friday, March 20th, 2009 | In Gold Markets
Commentary by Jonathan Weil March 19 (Bloomberg) — The banks demanded that the accountants give them leeway in how they report losses to investors. The accountants responded by giving away their souls.
This week, the Financial Accounting Standards Board unveiled what may be the dumbest, most bankrupt proposal in its 36-year history. If it stands, the FASB ought to change its name to the Fraudulent Accounting Standards Board. It’s that bad.
Here’s what the board is floating. Starting this quarter, U.S. companies would be allowed to report net-income figures that ignore severe, long-term price declines in securities they own. Not just debt securities, mind you, but even common stocks and other equities, too.
All a company would need to do is say it doesn’t intend to sell them and that it probably won’t have to. In most cases, it wouldn’t matter how much the value was down, or for how long. In effect, a company would have to admit being on its deathbed before the rules would force it to take hits to earnings.
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Alex Stanczyk, Financial Accounting Standards Board, Fraudulent Accounting Standards Board;, Gold Markets, Jonathan Weil, United States
 About Alex Stanczyk (http://rapidtrends.com/blog)
Alex Stanczyk is the editor of Your Financial Future. Mr. Stanczyk has launched numerous businesses, acted as the CEO of a Publicly Traded US Company, and brings over 21 years of business experience to YFF. He has authored numerous articles, mentored hundreds in personal finance and wealth building, and spends at least 4 hours each day studying the global markets, drawing insight and conclusions from the flows of global commerce. As an Affiliate of Anglo Far East Bullion Company, Mr. Stanczyk specializes in teaching foundational principles of money, the gold market, and why gold has been a storehouse for wealth for thousands of years. |
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