Ronald Fink, CFO Magazine
September 1, 2006
When will we learn that fraud will not be stopped by endless accounting and reporting rules? You can not write a rule for the free market system, since as soon as you write the rule the questions will come from what you did not include. How can you come up with "Fair Value"? It is all subjective and when subjective subject to manipulation just like FAS 109 and FIN 48.
How to manipulate your earnings to your liking as we add one more arrow to you quiver.
Posted by Ron Taylor | Oct 30, 2006 8:23 PM ET
The real issue today is not Fair Value accounting but the FASB's new definition of Fair Value. For 110 years the world has had a standard definition of Fair Market Value, agreed to by business, the Courts and the IRS. Now, in one stroke FASB has turned the valuation world upside down with its own unique definition. The consequences for financial reporting are going to be far-reaching - and controversial. Because the Standard is so new, few practitioners have been aware of, much less thought through the consequences of, this new definition. Trust me when I way that CFOs are going to be horrified when they see the new definition applied in practice.
Alfred M. King
540-972-4704
P.S. [not necessarily for publication] The magazine owes its readers a comprehensive explanation of the new Standard. Stay away from the red flag issue of "Fair Value Accounting" and just concentrate on application of SFAS 157. You will be surprised at how it will work out in practice. I personally would be glad to talk to one of your reporters.
Posted by alfred king | Sep 22, 2006 11:34 AM ET
Copyright 2011 © CFO Acquisitions LLC. All rights reserved Privacy Policy Site Map
