Warren Buffett on accounting: capriciousness or corruption?

Warren Buffett Torches Corporate America, Spells Doom for Stock Market announces the headline of a recent CCN.com commentary The article says: “Buffett’s 2019 letter is soaked through with his conviction that much of corporate America’s numbers are fake. He begins with the same admonition in his 2018 letter against the new Generally Accepted Accounting Principles…

General presentation and disclosures – salting the sugar high

As we discussed here, the IASB has issued for comment its long-awaited exposure draft General Presentation and Disclosures, with comments to be received by June 30, 2020. One of the proposals’ most headline-grabbing aspects is the new concept of “management performance measures,” defined as: subtotals of income and expenses that: (a) are used in public…

Multiple tax consequences – but only one headache!

I don’t dive into the technicalities of deferred tax too often in this space, because, you know, it’s nice to keep at least a handful of readers…  But let’s make an exception today, courtesy of this fact pattern recently considered by IFRIC: an entity acquires an intangible asset with a finite useful life (a licence)…

Coronavirus: crisis of confidence

As I write this post, the so-called “coronavirus” provides a rather depressing illustration of the fragility of many things, not least the hopes for rational long-term investing. While every day provides additional speculation on the financial impact, here are a few snippets from the past couple of weeks. (Thomson Reuters) (Finance Minister Bill) Morneau told…

Classification of liabilities, or: the rights stuff

The IASB has issued Classification of Liabilities as Current or Non-Current, amendments to IAS 1. The amendments are to be applied retrospectively for annual reporting periods beginning on or after January 1, 2022 – earlier application is permitted. The extended application date responds to the possibility that changes in classification as a result of the…