Banking


Although there is no evidence banks are abusing “special purpose entities” to inappropriately move liabilities off their balance sheets, Mark W. Olson, a Federal Reserve Board governor, says the Fed is working with banking regulators to prevent such practices. According to Olson, when financial institutions retain substantive risks associated with assets they’ve moved to special purpose vehicles, banking regulations require them to consolidate those assets in publicly available GAAP-compliant financial statements. He added that the Fed retains—and has exercised—the right to apply its own rigorous interpretation of GAAP to such statements to ensure their accuracy. ( www.federalreserve.gov/boarddocs/speeches/2002/20020207/default.htm )

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

COLUMN

Deflecting clients’ requests for defense and indemnity

Client requests for defense and indemnity by the CPA firm are on the rise. Requests for such clauses are unnecessary and unfair, and, in some cases, are unenforceable.