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Name: Nung on Mar 4, 2013Comments: As part of an organized glabol effort to reduce the inconsistent measurement of fair value and the application of impairment guidance for financial assets, FASB has taken swift action with rapid expansion of fair value accounting guidance intended to provide relevant and transparent information to users of financial statements.a0 Similarly, IASB has developed a timeframe for increasing guidance pertaining to recognition and measurement of financial instruments.a0 FASB and IASB collaboration on these projects is paramount due to the impending convergence towards a common, international standard of financial reporting. a0While the markets' decline appear to have leveled off through the first half of 2009, establishing fair value for certain investments and assessing asset impairment will continue to be challenging aspects of the 2009 financial statement reporting process due to new and developinga0 pronouncements from domestic and international standard setting organizations.The Evolution of Investment Accounting for Insurance EnterprisesIn 1982, FASB issued SFAS 60, Accounting for Insurance Enterprises, which established accounting guidance specific in nature to insurance companies.a0 SFAS 60 required that insurance companies carry fixed maturity securities at amortized cost and equity securities at fair value. Fluctuations in fair value were reflected as unrealized gains and losses within the equity component of the balance sheet, and gains and losses realized upon disposal were recognized within earnings.a0 SFAS 60 introduced the concept of ‘other than temporary' decline in fair value, but merely mandated that such declines be recognized as if a sale had occurred.More than a decade later in 1993, SFAS 115, Accounting for Certain Investments in Debt and Equity Securities, superseded the investment accounting guidance offered by SFAS 60 and established a new, categorical method for investment accounting with the introduction of the categories trading securities, available-for-sale securities and held-to-maturity securities.a0 A major development surfaced by SFAS 115 was the need to recognize market value fluctuations as a component of earnings for securities classified in the trading category.a0 SFAS 115 retained the ‘other than temporary' decline concept introduced in SFAS 60, and brought greater prominence to the concept of ‘intent to hold' as a means of justifying the classification of fixed maturity securities in the held-to-maturity category.a0a0 a0There were several shortcomings of SFAS 60 and SFAS 115 that were not fully exposed until the bull market, which began in the 90 s, was abruptly shifted into reverse during 2008. Specifically, the need for meticulous impairment analysis and the consideration of valuation when confronted with inactive markets were not exceedingly germane. The generally long-running bull market created an environment in which the concepts of ‘other than temporary' and ‘intent & ability to hold' did not require extensive analysis; bright line tests such as the ‘20% / 6-months' approach successfully weeded out the truly poor performing assets. Further, functional markets with high volumes of activity and pervasive asset inflation did not leave many people questioning the significance of a fair value methodology. a0While the economic crisis of 2008 lead to the recent barrage of accounting guidance, there existed a severe, but relatively short-lived market slide subsequent to the dot-com bust and 9/11 that sparked dialogue regarding the matters raised in the preceding paragraph. In 2005, FASB issued a Staff Position ( FSP'), FSP 115-1, which established a framework to evaluate impairment on a security-by-security basis, the severity of the impairment, and the likelihood of recovery prior to an anticipated disposal. Unfortunately, the guidance offered in FSP 115-1 was subjective and created significant in in evaluating other than temporary impairment ( OTTI'), which surfaced in the insurance industry during the 2008 financial statement reporting process, when comparing the aggressiveness (or lack thereof) of impairment charges taken by one carrier to the next. While it isn't extraordinary for two companies to reach different conclusions regarding OTTI for a particular security, due to differing conclusions about intent & ability to hold and assumptions about recoverability of the security valuation, the difficulty that exists for users of financial statements when attempting to compare one company's performance to another is great.With regard to the matter of valuation, in 2006, FASB issued SFAS 157, Fair Value Measurements, which offered a methodology for the determination of fair value and expanded fair value disclosure requirements.a0 SFAS 157 did not change the recognition requirements of SFAS 115; rather SFAS 157 provided a common definition of ‘fair value', information regarding the markets that companies should look to when measuring fair value, discussed various measurement techniques for assessing fair value, and introduced a hierarchical approach, based on inputs used to determine fair value, to enhance disclosures regarding the fair value measurement process.a0 Unfortunately, SFAS 157 was not as clear as the standard setters had envisioned; since its original release, several FSPs and other guidance have been issued to offer clarity on the application of SFAS 157.A Cry for Help – Recent Accounting Guidance in Response to the Economic CrisisWhile one could write for weeks about what has stemmed from the recent economic crisis, the most relevant to this piece would be the SEC's study on mark-to-market accounting, and the flow of new accounting pronouncements that has ensued subsequent to the study. In the past nine months, there have been three significant new pronouncements, each of which attempts to address issues that have arisen as a result of the economic crisis, and in response to the recommendations set forth by the SEC and reinforced by Congress:Flag
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Name: Ramin on Mar 5, 2013Comments: Clear, ifnormtaive, simple. Could I send you some e-hugs?Flag
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Name: Alexandr Yantselovskiy on Mar 5, 2013Comments:Flag
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Name: Rhonda Pattrick on Mar 5, 2013Comments:Flag
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Name: Dayla on Mar 7, 2013Comments: sands 8slp for R5000 14-19janamanzimtoti beach front 6slp R3500 23-30march durban spa 2bed 8slp R5800 14-21jan paalce 4slp R6800 16-21jan2slp oceanic R3500 21-28jan silversands 4slpR4000 28jan-4feb silversands 4slp R4000 4-11feb silversands 4slp R4000 11-18feb silversands 4slp R4000 18-25feb silversands 4slp R4000 4-11 feb caban beach 4slp R7500 14-21jan breakers in umhlanga 4slp R7200 contact fatima 0786354526 pin:26d366acFlag
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Name: Jennifer on Mar 7, 2013Comments: DayaI have the ffg weeks to let at Silver Sands 3 – Durban Beach Front. (1) 1,5 bedroom 6 SLEEPER sea fniacg unit on the 6th floor from Sat 7 to Sat 14 July – all rooms sea fniacg – (school holidays) for R4400. (2) 1,5 bedroom 6 SLEEPER sea fniacg unit on the 6th floor from Sat 30 June to Sat July 7 – all rooms sea fniacg – (school holidays) for R4400. Contact or 083 353 3386Flag
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Name: Nicole Weschke on Mar 7, 2013Comments:Flag
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Name: Rachel on Mar 8, 2013Comments:Flag
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Name: Yvonne Fast on Mar 9, 2013Comments:Flag
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Name: Ruth Serra on Mar 16, 2013Comments:Flag
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Name: Denise Lytle on Mar 18, 2013Comments:Flag
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Name: Yvonne Fast on Mar 18, 2013Comments:Flag
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Name: Jade Wishart on Mar 20, 2013Comments:Flag
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Name: Yvonne Fast on Apr 14, 2013Comments:Flag
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Name: Kellie Batholomew on Apr 16, 2013Comments:Flag
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Name: Karl Moore on Apr 19, 2013Comments:Flag