Bank Accounting & Finance articles from October 2005

Bank Accounting & Finance archives from October 2005

Goodwill impairment potential: lessons from purchase acquisitions: knowing the source of expected synergies is important when assigning purchased goodwill to reporting units.
October 1, 2005... Accounting for business combinations and acquisition goodwill changed in 2001 when the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 141, Business Combinations (SFAS No. 141) and Statement of...

Do executive options promote share repurchases? When firms have excess cash flow, managers have to choose among several alternatives to deploy the cash to add value to the firm.
October 1, 2005... The fundamental premise of corporate finance is that the decisions of the managers (agents) should lead to value maximization for their shareholders (principals). When faced with excess cash, managers have to choose among the various...

The economic consequences of FAS-133 for bank holding companies: negative stock price reactions are greater for the BHCs that trade or use more derivatives and for BHCs that are more interest sensitive.(bank holding companies, Financial Accounting Standards Board)
October 1, 2005... In June 1998, the Financial Accounting Standards Board (FASB) issued Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (FAS-133). The purpose of FAS-133 is to enhance the visibility, comparability and...

MBNA acquisition marks turning point for credit cards: sixty percent of all bank losses are credit card losses.
October 1, 2005... When Bank of America announced on June 30, 2005, that it was going to purchase MBNA America, it placed a milestone on the road tracing the development--already nearly 50 years old--of the U.S. plastic lending business. But, as is often the case...

SEC changes rules for registration, communications and offering processes: new rules acknowledge the influence of changing technology.(Securities Act of 1933)
October 1, 2005... The Securities and Exchange Commission (SEC) recently adopted changes to its rules regarding the registration, communications and offering processes regulated under the provisions of the Securities Act of 1933 ("Securities Act"). Specifically,...

Convergence of U.S. GAAP with International Financial Reporting Standards: an update: inconsistencies in revenue recognition are being addressed.(generally accepted accounting principles)
October 1, 2005... In October 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued a memorandum of understanding, called the Norwalk Agreement, professing their commitment to the convergence of U.S....

Jack Welch's "road map" to Winning: "leaders celebrate," writes the retired chief of GE.(Book Review)
October 1, 2005... On the very striking dust jacket of Jack Welch's WINNING, filled with the retired General Electric executive's reflections on managing both corporate organizations and personal careers, Welch's smiling face and penetrating eyes stare directly...