Welcome new reader!

Financial news I consider important, with my opinion, which is worth as much as you paid for it.
Please click HERE to read a synopsis of my view of the financial situation.

Wednesday, August 27, 2008

Honest accounting being discussed by SEC

My primary rant about USA financial situation is the US has allowed the accounting rules to become corrupted. The US strength has been transparency producing a trust from around the world. We have now degraded that trust resulting in a complete credit freeze and impossible to value corporations.

The SEC has proposed honest accounting by adopting international accounting rules by 2014.
This would eliminate "level 3 assests" which are basically unknown value assets. I have said before, until the rules are fixed, no trust can be established. I am very happy to see this starting to get recognition from the US government.

Click for a interview discussing this topic, and the problems around accounting.
None of this changes the view for next two years, but a pinhole of light was created today and hopefully will get much brighter.

UPDATE: 8/30/08, SEC moves on proposed changes to take effect as discussed, 2010 for some companies, 2014 for all.

No comments:

Post a Comment