See AU Section 332 Auditing Derivative Instruments, hedging Activities and Investment in Securities. * Every written instrument is by definition the memorialization of an event. Absent the event in the real world, the instrument is worthless at best and at worst fraudulent. This is derived from the my knowledge of generally accepted accounting principles (GAAP) …
It seems I stirred up a tempest with my blog this morning. My position is that applying generally accepted accounting principles and the accounting standards promulgated by the FASB, you must accept that Servicer advances are either a third party payment that reduces the account receivable of the creditor, or the advances are without effect …
Tempest Over Servicer Advances to Investors After Borrower Stops Payment Read More »
Just a short note on this. Think about it. Why would he have taken the money and used it for a condo when he had to cover bank losses on mortgage loans that were in default? Answer: the bank had no losses, so there was nothing to account for. This money wasn’t income. It couldn’t …
The IASB and FASB have been working on accounting rules for the “losses” at the banks. Someone is either in for a surprise or somehow the banks will escape the rules. One thing is certain, that the accounting firms that provide the auditing services and certification of the statements of the mega banks are in …
Leslie F. Seidman Chairman, FASB EDITOR’S COMMENT: You probably don’t know the name Seidman, much less Leslie Seidman. But back in the 1960’s when the accounting rules were first being changed (causing Briloff to write the book Unaccountable Accounting), the Seidman accounting firm was one of the few who understood the significance and moral hazard …
Leslie Seidman: Lighting Up a Dark Room at the FASB Read More »
From “Anonymous” Editor’s Post: It’s always a pleasure to read something where someone actually knows what they are talking about. The following post was picked up from the comments. The key points that are relevant to the Qualified Written Request and Discovery are 1. In the shuffling of paperwork, where was a “true sale” of …
