Deferred tax assets and deferred tax liabilities remain bizarre and frequently misunderstood members of the financial statement community. Whatever they may be, it is doubtful that the former are assets, or that the latter are liabilities. Likewise, to measure income tax expense as a function of financial reporting income is peculiar because Congress and the [...]
The Financial Accounting Standards Board (FASB) is getting around to addressing the disclosure catastrophe that has befallen our beloved financial statements. Yes, in case you haven’t noticed, the financial statement notes (the report content that really matters) have disintegrated into a series of disorganized, generic, boilerplate text references that can at best be called tedious, [...]
California is getting a lot of press these days about its awful budget situation, most of which has been self-inflicted. Boskin and Cogan refer to California’s problems as “Casino Budgeting.” They observe the reluctance of Governor Jerry Brown and other state politicians to impose real reforms, relying instead on increasing tax rates, accounting gimmicks, and [...]
Emily Chasan wrote in The CFO Journal that a “Lease Accounting Breakthrough Could Come in June.” Since this issue has been debated for several decades, it is about time.
Abraham Briloff complained that sometimes the accounting standard setters do a pathetic job by creating rules that enhance the ability of managers to manage earnings. At those times, he indicated that GAAP becomes cleverly rigged accounting ploys. The CRAP acronym is tart, but precise.