America's Securities and Exchange Commission (SEC) has voiced concerns that auditors may be taking advantage of financial accounting standard (FAS) 159, known as the 'fair value option'.
The standard governs how businesses record the value of financial instruments based on their worth in current market transaction, Reuters reports.
Some financial providers and banks may find that the standard presents an opportunity to avoid recognising losses through retained earnings, the SEC has said.
Accountancy firm McGladrey & Pullen said: "The SEC staff is very concerned about engineered transactions designed to get an accounting result."
See full Article.
Posts
