Friday May 22, 2015 H-P will split into two companies.  One will be the PC hardware side, the other the newer high tech e everything side.  And H- will be taking first one billion in GAAP charges and then a second big bite of perhaps $2 billion. Sounds like a real house cleaning. It turns…

Thursday May 14, 2015 PCAOB updates Revenue Recognition Rules which have not taken effect yet!

Monday April  20, 2015 Here is another example of how you can learn by reading the WSJ. Dim Expectations for Halliburton reports that HAL earnings fell from  5.35 a share for  2015 to 4.62 and now are expected at 1.26.    This article also analyzes the Baker Hughes acquisition,probably okay but no bargain. We are studying earnings…

Wed April 15 2015 Owens OC.N was a big loser on Wall Street yesterday. It may fail the going concern test.  This article demonstrates much what we study in financial accounting.

Tuesday April 7 2015 The FASB is proposing a time delay on implementing Revenue Recognition rules. Start date is now period beginning after Dec 15 2017 .

Thursday March 26, 2015 A Student asked about the Kraft Heinz deal, why now? Brazilian 3 G is known for cost cutting, and Buffet had a hand in this as well. Buffet plans on zero based budgeting, and as the WSJ observed how about  some of that for Washington? So I suspect they will fire the…

Monday March 23, 2015 A study suggests IFRS lease rules may produce more favorable results than US GAAP lease rules. This is a major re do requiring leases for more than on year to be on the balance sheet. 

Wednesday March 18, 2015 Whoops, falling oil prices and slowing world economies mean lower earnings. So much for the stock market predicting better times. Remember the stock market is up on stock buy backs by corporations using near zero debt to finance such acquisitions.

Thursday March 12, 2015 IGNITE purchased Macaroni Grill two years ago for $55 Million.  Now it is selling the chain for $8 Million, a 85% mark down.  Macaroni's 150 locations gross about $300 Million a year. Eight Million sounds like a bargain to me.  As accountants, it is imperative to be able to assess value.…

Thursday Feb 19 2015 The FASB and IFRS have agreed on the need for clarification  regarding revenue recognition standards. As we have noted the only constant in accounting regs is change.