Bohemia, NY (PRWEB) February 06, 2013
On February 6, 2013, Long Island accountants, Diapoules & Feinstein CPAs P.C., comment on a South Florida Business Journal article by Paul Brinkmann regarding the Financial Accounting Standards Board’s new controls for repurchase agreements.
According to the South Florida Business Journal article, “The Financial Accounting Standards Board (FASB)…unveiled its proposal to improve financial reporting about repurchase agreements.” The article states that the new standard will set forth the guidance for distinguishing transactions, such as sales and secured borrowings.
The article informs that the accounting community is encouraged to provide their comments on the proposal by the end of March. According to FASB Chairman Leslie Seidman, “Investors have raised concerns that current accounting and disclosures for repurchase agreements do not appropriately reflect the obligations and risks… in certain circumstances.”
The article mentions that the current guidelines leave the transferor in control, if there is a forward agreement to repurchase the same fixed price financial asset from the transferee. According to the article, “effective control is not maintained if a transferor won’t recover the transferred asset at the conclusion of the agreement.”
Long Island accountants, Diapoules & Feinstein CPAs P.C., express their thoughts on the news of the new repurchase controls. According to Jim Diapoules, “We are glad to hear that FASB is updating their rules regarding the financial reporting on repurchase agreements. In general, the accounting profession’s reporting requirements have not kept pace with the increasing complexity of financial instruments. This change is welcomed by the accounting profession but it is one of many changes that need to be made in the wake of the disastrous financial collapse of 2008.”
Diapoules and Feinstein CPAs P.C have been providing accounting, auditing and tax services to Greater New York City area since 1989. D&F provides our clients with great personal attention and years of professional experience in order to see them succeed and help them to feel confident.