Comments on: The politics of accounting and bank failure http://www.accmanpro.com/2008/12/29/the-politics-of-failure/ Thu, 09 Feb 2012 10:01:51 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Bad boys, old boys, new thinking | AccMan http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5478 Bad boys, old boys, new thinking | AccMan Sun, 15 Mar 2009 23:07:16 +0000 http://www.accmanpro.com/?p=3787#comment-5478 [...] The politics of accounting and bank failure (accmanpro.com) [...] [...] The politics of accounting and bank failure (accmanpro.com) [...]

]]> By: alastair http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5477 alastair Thu, 08 Jan 2009 15:33:54 +0000 http://www.accmanpro.com/?p=3787#comment-5477 Richard, accounting is rarely political, but it is appropriate that politicians take an interest in accounting standards, just as it is appropriate that other users of accounts take such an interest. However, I think the law is correct, in that it requires that accounts should comply with accounting standards. I am no fan of the IASB or the UK equivalent - personally I think the current crop of standards are far to overworked, and unfortunately beyond the ken of most users of accounts, but I do think it appropriate that accounting standards are produced by a body who understands what they are talking about. I think Dennis's piece highlights nicely one of the problems when politicians tinker. The questions to answer is what is the appropriate balance. Richard, accounting is rarely political, but it is appropriate that politicians take an interest in accounting standards, just as it is appropriate that other users of accounts take such an interest. However, I think the law is correct, in that it requires that accounts should comply with accounting standards. I am no fan of the IASB or the UK equivalent – personally I think the current crop of standards are far to overworked, and unfortunately beyond the ken of most users of accounts, but I do think it appropriate that accounting standards are produced by a body who understands what they are talking about.

I think Dennis's piece highlights nicely one of the problems when politicians tinker. The questions to answer is what is the appropriate balance.

]]> By: Who knows, who cares? | AccMan http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5476 Who knows, who cares? | AccMan Wed, 31 Dec 2008 09:13:30 +0000 http://www.accmanpro.com/?p=3787#comment-5476 [...] have a pivotal role to play in guiding business. But…the profession has to change. Allowing itself to be bulldozed is not a great starting [...] [...] have a pivotal role to play in guiding business. But…the profession has to change. Allowing itself to be bulldozed is not a great starting [...]

]]> By: Just who the heck is running the profession? | called2account http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5475 Just who the heck is running the profession? | called2account Wed, 31 Dec 2008 05:15:33 +0000 http://www.accmanpro.com/?p=3787#comment-5475 [...] Dennis Howlett has asked: [...] [...] Dennis Howlett has asked: [...]

]]> By: Tax Research UK / Just who the heck is running the profession? http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5474 Tax Research UK / Just who the heck is running the profession? Tue, 30 Dec 2008 11:44:21 +0000 http://www.accmanpro.com/?p=3787#comment-5474 [...] Dennis Howlett has asked: [...] [...] Dennis Howlett has asked: [...]

]]> By: Who’s Winning The Fair Value Debate - Might Makes Right | called2account http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5473 Who’s Winning The Fair Value Debate - Might Makes Right | called2account Tue, 30 Dec 2008 06:40:24 +0000 http://www.accmanpro.com/?p=3787#comment-5473 [...] lax regulatory oversight of folks who were fleecing even sophisticated investors of billions. Dennis Howlett takes a jabbing stab this morning at explaining how bad it really is here in the US: “If the [...] [...] lax regulatory oversight of folks who were fleecing even sophisticated investors of billions. Dennis Howlett takes a jabbing stab this morning at explaining how bad it really is here in the US: “If the [...]

]]> By: Richard Murphy http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5472 Richard Murphy Mon, 29 Dec 2008 18:55:23 +0000 http://www.accmanpro.com/?p=3787#comment-5472 Alastair Accounting is political Accounting exists because law requires it Accounting standards are part of law Why should they be beyond democratic control? What's your proposal? Dictatorship of accountants? <a href="http://www.taxresearch.org.uk/blog/" rel="nofollow">Richard Murphy</a> Alastair

Accounting is political

Accounting exists because law requires it

Accounting standards are part of law

Why should they be beyond democratic control?

What’s your proposal? Dictatorship of accountants?

Richard Murphy

]]> By: Tax Research UK / An accountant’s duty http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5471 Tax Research UK / An accountant’s duty Mon, 29 Dec 2008 18:54:04 +0000 http://www.accmanpro.com/?p=3787#comment-5471 [...] is what accountants have done for far too long. They have sought, as Dennis Howlett has discussed elsewhere in the last day or so, to live by the rules. That’s not good enough. In fact it is a recipe [...] [...] is what accountants have done for far too long. They have sought, as Dennis Howlett has discussed elsewhere in the last day or so, to live by the rules. That’s not good enough. In fact it is a recipe [...]

]]> By: Doug Cornelius http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5470 Doug Cornelius Mon, 29 Dec 2008 17:28:37 +0000 http://www.accmanpro.com/?p=3787#comment-5470 Dennis - Mark-to-market has put many financial firms into a death spiral. They have to write down assets, which causes them to sell assets at distressed prices to maintain capital levels, which causes some of their remaining assets to decrease further in value, which causes them to sell. . . The market for many securities evaporated, making it nearly impossible to figure out the value of the assets. (We have a similar problem trying to figure out real estate asset value.) With a poorly functioning market you leave it up to the CFOs to come up with a number out of thin air. On the the other hand, this lack of transparency of asset value helped caused the market to fail. Nobody trusted that truthfulness of a counterparty's balance sheet. Perhaps the new U.S. administration can help get the regulators and enforcement bodies back on track. Dennis -

Mark-to-market has put many financial firms into a death spiral. They have to write down assets, which causes them to sell assets at distressed prices to maintain capital levels, which causes some of their remaining assets to decrease further in value, which causes them to sell. . .

The market for many securities evaporated, making it nearly impossible to figure out the value of the assets. (We have a similar problem trying to figure out real estate asset value.) With a poorly functioning market you leave it up to the CFOs to come up with a number out of thin air.

On the the other hand, this lack of transparency of asset value helped caused the market to fail. Nobody trusted that truthfulness of a counterparty's balance sheet.

Perhaps the new U.S. administration can help get the regulators and enforcement bodies back on track.

]]> By: alastair http://www.accmanpro.com/2008/12/29/the-politics-of-failure/comment-page-1/#comment-5469 alastair Mon, 29 Dec 2008 11:15:49 +0000 http://www.accmanpro.com/?p=3787#comment-5469 Dennis, are you really suggesting it is wrong that politics should be able to influence accounting standards? Dennis, are you really suggesting it is wrong that politics should be able to influence accounting standards?

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