Wednesday, August 12, 2009
Junior on Accounting Rulemakers
Junior at Junior Deputy Accountant has a 28 July 2009 post referring to a NYT piece by Floyd Norris about accounting rulemakers, link: http://www.jrdeputyaccountant.com/2009/07/accounting-under-pressure-problem-with.html. Junior blasts the FASB and IASB, which "have a valid argument in insisting their decisions be firmly grounded in political independence (bah, just as with the Fed, the entire concept if this is a joke at best)". Amen. Junior quotes Edward Trott, "'In my experience, banks want current fair value information about assets that serve as collateral for loans. They do not want information about what assets cost two or three years ago'." Indeed. I've been saying things like this for years.