When is a loss a loss? That is the question.
Unfortunately, there appear to be two answers.
Under the proposal by the London-based International Accounting Standards Board, which writes the accounting rules for most countries outside the U.S., banks would book loan losses based on future expectations that the losses will occur. That will speed up the booking of losses — currently, banks don’t record loan losses until there is evidence they have actually happened, an approach that many observers believe led them to be too slow in taking losses during the financial crisis.
The IASB proposal, which was widely expected, spotlights a conflict with the Financial Accounting Standards Board, which writes U.S. accounting rules. The FASB issued a proposal in December that would shift U.S. banks to the expected-loss standard, but the two boards differ on exactly when losses would be booked: If both proposals are approved, U.S. banks could be booking more losses more quickly than their foreign counterparts.
Global Proposal Differs with U.S. on Bank Rules [Dow Jones via Fox Business]
Converging their accounting for financial instruments… the never-ending saga.
Speaking of booking losses…
When does Bess book her loss with having hired Shazar?
I’d say good find with the Heidegger.
You get to live one more day, shazar.
No shit. She should bring back MBA Girl. At least that girl did more than photocopy other people's work
Why are there beings at all, instead of Nothing? – M. Heidegger
…he was a boozy beggar who could drink you under the table
And we need more from the bookie guy too.
You really think US banks can book losses faster than we can?
UBS