Saturday, September 29, 2007

Creative Accounting

Stuff like this (WSJ.com sub req'd) makes me wonder if the FASB is a group of dope addicts. Ummm, didn't they just make debt look more like equity, in terms of how it performs on the financial statements? I believe this is FAS 159, which I'll definitely be reading more about. However, between this and FAS 157, you have to think that the deck is stacked in the favor of the financials. While I'm not one to run around saying "its not fair", at the same time, these rules make the accounting quite a bit murkier.

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