Look to Lorensen and learn

Article Abstract:

The International Accounting Standards Committee (IASC) has initiated a project that will address the so-called 'other provisions.' These provisions are amounts allocated to cover future charges and losses, such as potential damages in a forthcoming lawsuit and the cost of making good environmental pollution. Because the IASC indicates that it will take the position it described in an earlier discussion paper, it is bound to fail in its objective of creating a standard that would be accepted internationally. The aforementioned paper has two critical flaws. One is that it is completely based on deductive reasoning while the other is that it reflects the views of only the accountants in the Anglo-American hemisphere. If the committee does not correct these mistakes, the project is bound to fail like Leonard Lorensen's standard for foreign currency translation in the 1970s.

International Accounting Standards Board

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The verdict on FRED 1: room for improvement

Article Abstract:

The Accounting Standards Board (ASB) has issued its initial financial reporting exposure draft (FRED 1) and is currently soliciting comments from practitioners regarding its proposals. The ASB's consultation process shall serve as the basis for any modifications that shall be made before it announces a definitive new standard for financial reporting. The ASB would be advised to listen carefully to practitioner viewpoints on FRED 1 as the document contains many faults, not the least being its confusing and unnecessarily complicated language.

Accounting, auditing, & bookkeeping, Laws, regulations and rules, Accounting Standards Board, Financial statements

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A house built on sand

Article Abstract:

Payments based on shares and options can cause problems for accountants, but many are self-inflicted. A paper from the G4+1 putting forward their rules on the subject, which contains many errors causing further problems, is discussed.

Payment

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