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1993 Reports

Volume 2, No. 12


Baby 106? Statement No. 112 Arrives Soon:  As companies start their year end house-cleanings, analysts should not be surprised to frequently see charges for SFAS No. 112 adoption. On the surface, these adoption charges may sound much like the …

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Volume 2, No. 11


A Reckoning On Rates: Are Pension Plan Assumptions Too High?:  Recent press reports have focused on an SEC drive to inject lower - and more realistic- discount rates into corporate pension plans. The consequences are greater pension liabilities. However, …

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Volume 2, No. 10


The FASB's Project On Stock-Based Compensation:  The FASB's proposed rules on stock-based compensation have been in the public domain for a few months. Presented here is a brief update on some of the balance sheet, measurement and political issues …

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Volume 2, No. 9


34% + 1% > 35%? The New Clinton and FASB Math For Corporate Taxes:  The Revenue Reconciliation Act of 1993 raised the marginal corporate tax rate by a mere 1%. However, the interplay between that retroactive tax increase and …

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Volume 2, No. 8


Pot Of Gold Or Can Of Worms? Distortions Caused By Overfunded Pensions:  "An abundance of riches" might be the best way to describe the overfunded pension plans of some American corporations. While no investor would suggest that an underfunded …

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Volume 2, No. 7


For Marketable Securities: Market Value Is Now The Rule:  The new standard concerning investment accounting for debt and equity securities expands the use of fair value accounting for these assets. The standard provides three categories of investments: held-to-maturity securities, …

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Volume 2, No. 6


New Rules For Impaired Loan Accounting By Creditors:  Up until now, different financial institutions employed different methods for determining the value of an impaired loan. Financial statement comparability between essentially similar financial institutions suffered as a result. The FASB's …

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Volume 2, No. 5


How Acquisitions Can Become One-Time Charges:  Purchase accounting treatments often yield goodwill - and the associated amortization can hamper earnings comparisons for years. Acquiring companies that have little in the way of tangible assets can impose plenty of goodwill …

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Volume 2, No. 4


LIFO Pranks: Soft White Underbelly Of A Conservative Accounting Technique:  The usual intent of companies using the LIFO inventory assumption is to lower income taxes and save cash during inflationary times. An additional benefit is that LIFO produces a …

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Volume 2, No. 3


Behind The Noise:  The Financial Accounting Standards Board's renewed project on stock option compensation shakes up the current practice for recognizing expense for these management benefits. A test of their tentative new accounting on the Dow Jones Industrials shows …

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