The US Financial Accounting Standards Board (FASB)
changed the mark-to-market rules last week
First, they suspended the mark-to-market rules
for assets in distressed markets
Second, they widened the definition
of "temporary" impairments of troubled assets
The board decided to make the new changes
effective immediately
This will allow banks to write up their paper
and it happens before Treasury Secretary Tim Geithner
starts putting taxpayer money at risk
…The information will still be there
but the way it will be recorded will not be reflected
in the profit and loss statement…
Expect to see a pop in valuations
…The International Accounting Standards Board
sent out a scathing press release
I guess from that we should assume
that European banks will not be so fortunate
as their US counterparts
If some accounting methods inflate financial valuations
increasing stakeholder and insider worth
while some mainstream news organizations
report and/or promote what may be disingenuous information
to justify what could be inflated prices
why wouldn’t targeted political contributions
influence accounting legislation
and regulatory enforcement?
What some invent
the rest enlarge
Jonathan Swift
No comments:
Post a Comment