Bank Accounting & Finance articles from August 2005

Bank Accounting & Finance archives from August 2005

Building a consensus on credit union capital adequacy: at the appropriate level, risks are covered and competitive capability is enhanced.
August 1, 2005... Either too little capital or too much capital can hurt the mission and success of a credit union. The ideal capital position for a credit union is the "just-right" level needed to be a high-performing credit union. The appropriate amount...

Employee stock option valuation: regional bank response to SFAS No. 123R: option terms, volume and options-pricing assumptions are among the factors that will affect the impact of the new Statement of Financial Accounting Standards.(Statement of Financial Accounting Standards )
August 1, 2005... In 1995, the Financial Accounting Standards Board (FASB) established the fair-value-based method for measuring share-based compensation cost given to employees. Although this early Statement of Financial Accounting Standards No. 123 (SFAS No....

The value relevance of goodwill impairment loss: while the market discounts the importance of goodwill amortization, it does not disregard goodwill impairment loss as irrelevant.
August 1, 2005... Since 2001, Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 141, Accounting for Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets, have required that companies...

Biased rounding in the reported earnings of financial firms: rounding in financial statements gives managers an opportunity to misstate earnings inappropriately by consistently rounding up income items more often than down.
August 1, 2005... Earnings are never reported to the last penny. This is for two reasons. First, it would be meaningless to do so since earnings cannot possibly be measured with that degree of accuracy. Second, financial report users don't require that level of...

A new FASB standard for accounting changes: implications for the banking industry: the proposed accounting standard would affect the amount of reported earnings for banking firms that have changed from one accounting method to another.(FASB and the EITF)(Financial Accounting Standards Board)
August 1, 2005... With the increased emphasis on corporate governance in the Sarbanes-Oxley Act of 2002, investors have demanded more reliable and comparable financial statements. (1) In addition, with U.S. companies increasingly pursuing global markets, the...

Audit preparation that aligns business and IT: a process for establishing a sustainable IT compliance program.(Technology Update)
August 1, 2005... By now, most U.S. companies have survived their first audit under the Sarbanes-Oxley Act of 2002 ("SOA") and have initially achieved both internal compliance objectives and met the auditor's requirements. While the CEO and CFO must ultimately...

SEC staff issues guidance on the implementation of internal control reporting requirements: the staff emphasizes judgment and a top-down approach.(SEC Update)(Securities and Exchange Commission)
August 1, 2005... The staff of the Securities and Exchange Commission (SEC) at the Division of Corporation Finance and the Office of the Chief Accountant have jointly released a "Statement on Management's Report on Internal Control Over Financial Reporting" to...

Corporate governance and the failure to act: process versus people: what makes an ethical corporation?(Leadership and Governance from the Inside Out)(Book Review)
August 1, 2005... If you're looking for a Sarbanes-Oxley checklist or a model charter for your audit committee, you won t find either in LEADERSHIP AND GOVERNANCE FROM THE INSIDE OUT. Happily, there's no shortage of sources for advice in those areas. This book...