Financial Reporting


FINANCIAL REPORTING
Sen. Charles Schumer, D-N.Y., called on the leaders of the Big Four to ensure that their clients are aware of SEC and FASB guidance on Statement no. 140 relating to modifications of subprime loans at risk of default.

In a letter to Barry Salzberg of Deloitte & Touche USA LLP, James Turley of Ernst & Young LLP, Timothy Flynn of KPMG LLP and Dennis Nally of PricewaterhouseCoopers LLP, Schumer wrote that one potential obstacle to refinancing or modifying at-risk subprime loans is a concern that such a move might require companies to stop using off-balance-sheet treatment for their securitized mortgage assets, putting them at risk of violating capital and other requirements. FASB and the SEC have concluded that off-balance-sheet treatment could continue in such cases.

Schumer, a member of the Senate banking and finance committees, called on the Big Four leaders to inform their clients of the guidance. “I am concerned that many of the investors holding securitized mortgage assets are continuing to cite FAS 140 as a reason to avoid loan modifications and refinancings,” he wrote.

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out