In my view the Financial Accounting Standards Board is doing the country a great disservice. A few years ago when the feces was hitting the fan on a near daily basis it became abundantly clear that accounting standards had to be changed.
Two areas that were abused big time and contributed to the problems were the issues of mark to market and lease accounting. These categories are where big leasing companies can hide debt and manipulate earnings. Financial firms can hide book losses under the guise that they will “Hold to Maturity”. Insurance companies can write derivate contracts that are “off the books”.
There were firm promises made that things would change. Unfortunately FASB has folded like a cheap suit in the rain. There will be no better disclosure in the future than in the past. Therefore the past will be repeated in the future. The scary thing is that FASB is a financial slave to those who benefit. Same old, same old.
I keep hoping that there is a Yin and Yang in the world. Some hidden force that attempts to bring balance. Who knows? In the case of FASB they might have just gotten hit on the head with some Yang.
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