She backs tougher international standards like Basel III, which would, among other things, illuminate off-balance sheet risk.
Our first Red Flag report focused on off-balance sheet debt and how it affects over 2900 companies.
FORBES: Black Liquor Tax Credit Comes Back To Burn Paper Companies
The Federal Accounting Standards Board is considering new rules about how financial companies account for off-balance sheet holdings.
Re-hypothecation transactions are off-balance sheet and are therefore unrestricted by balance sheet controls.
Unlike the opaque Lehman, MF Global fully disclosed the trades and their accounting treatment including the off-balance sheet effect.
FORBES: Uncontrolled Risk Taking, Not Bad Accounting, Did MF Global In
Deferred tax liabilities, off-balance sheet debt, and asset write-downs result in a bloated balance of which most investors are not aware.
Banks set up their off-balance sheet vehicles in response to capital rules.
New Constructs includes off-balance sheet debt in all of its reports and adjusts the reported earnings of all companies for this misleading accounting practice.
FORBES: Off-Balance Sheet Debt: Bad Enough That FASB Notices, Maybe You Should Too?
The Treasury Department is so concerned it got the three biggest U.S. banks to organize a fund to bail out these off-balance sheet holdings.
In 2002, there were next to nothing in off-balance sheet loans.
The revelations that sparked the crisis in October, about off-balance sheet partnerships, accounting restatements and an investigation by the Securities and Exchange Commission, were embarrassing, certainly.
During the meeting, Hulse passed around a memo, disclosing that PwC had erred in approving the accounting treatment for the off-balance sheet entities, the suit says.
After pouring through the Financial Footnotes of over 50, 000 annual reports on file with the SEC, we found that over 2, 900 companies have off-balance sheet debt.
FORBES: Off-Balance Sheet Debt: Bad Enough That FASB Notices, Maybe You Should Too?
PwC came to this conclusion after consulting with three of the other big accounting firms and each firm indicated that the unit didn't qualify for off-balance sheet treatment, the suit says.
Meanwhile on the domestic front, it listed potential threats including rising property prices, which have triggered fears that new asset bubbles could form, along with "excessive off-balance sheet financing" by banks and local governments.
BBC: China needs 'renewed reform momentum', says OECD survey
However, evidence emerged in the Andersen trial that Mr Fastow had rejected a particular accounting treatment for some of the off-balance sheet partnerships, adopting instead something that did not conform with American accounting rules.
Continued pressure on its capital levels, however, because of its exposure to rising consumer credit costs, leveraged corporate loans, off-balance sheet conduits and structured products, will force him to seek new capital sooner rather than later.
The AFMC windfall report is the second in a series of Red Flag reports that focus on culliing key details from the Financial Footnotes.. Our first Red Flag report focused on off-balance sheet debt and how it affects over 2900 companies.
FORBES: Black Liquor Tax Credit Clouds Paper Companies' Earnings
Part of the blame goes to off-balance-sheet equipment leases that EDS has handed off to banks.
Nearly a year ago, even France admitted to having off-balance-sheet transactions and hiding debt.
Frequent use was made of off-balance-sheet vehicles, on a greater scale even than Enron.
ECONOMIST: Online, straight from the gut and politically incorrect
So were the company's links with the obscure off-balance-sheet partnerships that were subsequently to trigger its downfall.
It all sounds suspiciously like the subprime mortgage boom, when banks parked illiquid assets in off-balance-sheet vehicles.
Off-balance-sheet transactions, widely used by Enron and employed by many companies for legitimate reasons, further obfuscate the picture.
However, the volume of products that it keeps off-balance-sheet where the bank technically isn't responsible to cover any losses fell.
To finance the off-balance-sheet assets, the government set deposit interest rates at very low levels: 1% or so.
For instance, they are carrying large off-balance-sheet liabilities and have secured loans with collateral that does not exist.
Another line of defence is expected to rest on Mr Fastow's self-enrichment from off-balance-sheet partnerships that dealt with Enron.
But these are far different animals from the off-balance-sheet monsters that led to the collapse of Enron in 2001.
The accounting standards for both these trades and repo-to-maturity trades allowed off-balance-sheet treatment.
FORBES: Uncontrolled Risk Taking, Not Bad Accounting, Did MF Global In
应用推荐