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June 16, 2008


David Merkel

I am not optimistic here. Unlike other value investors, though, I run a few accounting integrity checks on the accrual items. IFRS will make the accruals anomaly more intense, and those that don't follow it closely will underperform.

We should not adopt IFRS. Yes, it puts us on a common playing field, but by reducing transparency and increasing a management's ability to smooth results, in the short run.

Independent Accountant

The Chris Cox (CC) SEC pushes IFRS accounting because Big Business wants IFRS accounting. The CC SEC is second worst I've encountered. I agree with you about SFAS 133 on hedge accounting: it makes no sense.
So it goes.


That's a pretty unfair attack on Leisenring with no appropriate context regarding the background of FAS 133. The alternative to FAS 133 was virtually no recognition of derivatives in financial statements. Is it perfect? No. Were compromises made? Absolutely. But it was better than what was there before. And it certainly doesn't indicate a pattern of Jim "capitulating to the majority." If you've ever met Jim, then you know he's not real concerned with what the majority thinks.

You also should point out that Leisenring strongly dissented from a much more significant "option" that was put forth by the FASB--FAS 123. Considering that the FASB was being threatened with a shut down at that time, I'd say that is a pretty strong indicator of Jim's independence.


Why do I feel like I'm in "Atlas Shrugged?"

Big 4 Interview

Its really hard to form a solid opinion, I keep flip flopping but, overall I think its a much better set of standards when you consider the most important thing it brings: a more principle based approach. Exactly what we need, put the ball in the auditors court to enforce judgements with more professionalism rather than management making estimates and managing numbers to set benchmarks given o them in accounting literature...

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