GLG News(sm): Accounting & Financial Analysis

Obama Expected to Sign Generous NOL Carryback Bill on Friday

Thomas Klein — Thu, 05 Nov 2009 23:47:58 EST

On Thursday, Congress sent a bill to the White House containing enhanced net operating loss (NOL) carryback opportunities for most companies. The bill contains a provision extending the NOL carryback period from two years to five years for losses incurred in 2008 or 2009. President Obama is expected to sign the bill on Friday which would result in the immediate filing for refunds by many companies.

Accounting and The Gold Price - Fair Value - Valuation Problems to be Expected

Nitish Grover — Wed, 04 Nov 2009 06:56:05 EST

As the price of gold rises on a week on week basis one can expect to see ramifications in the accounting arena. There are a number of investment products sold in the market which are linked to the price of gold and its physical holding. In this analysis I look at the nature of problems to be expected - especially in relation to fair value disclosures.

Truth or consequences

GLG Expert Contributor — Sat, 31 Oct 2009 12:41:52 EST

By setting up Kenneth Feinberg as the bad guy, the Obama administration can claim that it is taking a hands-off stance with respect to executive pay. Nothing can be further from the truth. Mr Feinberg derives his authority from the same government that claims to be taking a hand-off approach. This is not to say that the federal government should not have a "say on pay" for banks and automakers that have been bailed out with taxpayer funds, many of whom would not be in business otherwise.

Should the government intervene in corporate executive compensation?

GLG Expert Contributor — Fri, 30 Oct 2009 14:21:41 EST

Obama’s administration should not have to micro-manage the financial institution, such as AIG, Citi, which received tarp money. However, the administration is correct in letting Kenneth Feinberg, U.S. Treasury Department, handle this issue concerning misappropriation of funds. The government should have given tarp money with strict restrictions on use of funds: (i) increase cash reserves level, (ii) reduce debt, and (iii) spend on capital investments.

Working Capital - Internal Audit and Control - Accounting Standards

Nitish Grover — Fri, 30 Oct 2009 09:54:10 EST

The referred Article speaks of the importance of working capital, internal audit and proper financial statement and how these interact to provide a proper business growth environment. In my analysis below I give my thoughts on these aspects.

Creative Landlord's Keep Existing Tenants and Try to Fill Vacancies

GLG Expert Contributor — Wed, 28 Oct 2009 22:14:28 EST

Renegotiating existing leases and renewals may improve some tenant's 2010 budgets. Tenants are the beneficiaries as landlords struggle to keep occupancy status quo and work toward attracting new tenants. Area absorption rates are for the most part negative as businesses downsize and tenants move only if it is economically beneficial. The following analysis summarizes the trends in the Midwest, specifically the greater St. Louis area.

Good and Bad JAL : selling the Crown Jewels -part 2-

GLG Expert Contributor — Thu, 15 Oct 2009 05:51:59 EST

Key problem is shareholder's pain tolerance level.

Obama Administration Moves Foreign Earnings Tax Deferral Reform to Back Burner

Thomas Klein — Tue, 13 Oct 2009 14:13:51 EST

Once again, a proposal to reform how a U.S. based multinational company's foreign earnings are taxed has failed to gain congressional support. Similar proposals introduced over the past twenty years have consistently failed to gain traction. The current proposal was part of the Obama administration's fiscal year 2010 budget which made reference to additional tax revenues in excess of $200 billion related to the reform of corporate taxation on foreign earnings.

Offshoring - Changing Accounting Dynamics - Auditing and Control

Nitish Grover — Thu, 08 Oct 2009 14:05:21 EST

Increased overseas costs, security dynamics and the sudden availability of newly jobless employees has changed the offshoring dynamics. Offshoring continues but the repetitive tasks with high risk and control difficulties are getting out of the offshoring matrix. In this analysis I look at the effects of these changing dynamics in relation to auditing and control factors.

Central Bank Policy - Gold - Dollar - Accounting and the Gold Standard

Nitish Grover — Thu, 08 Oct 2009 12:42:43 EST

The policy of Central Banks over the last year has left the monetary system in a state of limbo. The value of the dollar in terms of bullion and other commodities is taking a beating. The increasing value of gold in currency terms reminds one of the days of the gold standard and the benefits of having gold as a store of value. In this analysis I take a look at how this increasing value of gold may effect internal controls and corporate financial policies.

Japan Air Line (JAL) a Japanese GM or long-term investment opportunity?

GLG Expert Contributor — Sun, 04 Oct 2009 17:36:07 EST

JAL has been said to be a potential Japanese GM; does the comparison stand out?

Spain's growing budget deficit - a Spanish opinion

GLG Expert Contributor — Fri, 02 Oct 2009 11:13:54 EST

Mr Rodríguez Zapatero's economic policies demonstrated to be inconsistent, improvised and unsustainable.Spain needs more time and harder work than peer countries to recover. Structural reforms on education, fighting spreading corruption and strengthening the national political tissue are much needed to help the economy return to its growth path.Recession, unemployment and credit crunch expected to continue during 2010.

Keynes back to Spain?

GLG Expert Contributor — Tue, 29 Sep 2009 14:43:33 EST

Economic crisis in the Spanish Government undertakes a way of raising taxes to try to maintain consumption with social measures without increasing the deficit at a level insurmountable.Notwithstanding that higher taxes, especially VAT, does not seem well designed and that certain errors persist, health, and instead do not raise taxes to record the highest incomes.

Business Cycles, Legislation and Accounting - Where will it Lead?

Nitish Grover — Tue, 15 Sep 2009 13:45:07 EST

The current recession is part of a business cycle. The reasons for the recession are several but then a trough after a long period of prosperity is to be expected. President Obama puts the blame on investment bankers and executives. There is also talk of legislation to limit further repeats. I wonder how this will impact accounting and in turn the figures on which financial decisions are made. In this analysis i present some of my thoughts on the subject..

Bank of America and The Lesson of Parmalat

GLG Expert Contributor — Tue, 15 Sep 2009 06:48:53 EST

Parmalat (once Italy’s largest dairy company) was "Europe’s Enron".In my experience, fraud and corruption in an organisation can only be rooted out if my “five principles of good governance” are followed.When something stinks, you open the window and throw it out.

An unique form of British Justice of International nature

GLG Expert Contributor — Tue, 15 Sep 2009 06:05:45 EST

Different standards for different peopleGreed, for power and Pelf.

Global Debt Situation - Fair Value - Financial Statements - Paradigms

Nitish Grover — Sun, 06 Sep 2009 12:47:45 EST

The global economy is in a tailspin. Politicians and economists like us to believe otherwise amid worsening job losses and a weakening US dollar. The graph of the USD vs. gold price shows the fall in value of the USD. This situation throws up questions for the auditor/CFO/accountant and others involved with financial statements. Analysts would also need to evaluate the fair value of assets on financial statements in this evolving situation. In this analysis I look at some of these questions.

The Lesson of Lehman Brothers

GLG Expert Contributor — Sun, 06 Sep 2009 05:02:23 EST

It is self evident that Lehman Brothers would still be in existence today had they rewarded Fuld and his cronies for not changing the risk structure of the bank, and not leveraging it into oblivion. The lesson here is one that all professional business people know full well, but some seem to have forgotten, bonuses should be aligned to key performance indicators (KPI's) that genuinely add value to the company's bottom line.

The Consequences of The UBS Tax Evasion Cases

GLG Expert Contributor — Tue, 01 Sep 2009 08:03:24 EST

As the IRS examines the 4,450 UBS AG Swiss bank accounts it would do to remember that companies offshore as well as individuals. If you do not understand the structure of the company, or the role/purpose of its offshore holdings then treat it with extreme caution. The international regulatory environment (wrt offshore companies and tax treaties) will tighten over the next few years, thus making it increasingly difficult for companies to use these dubious structures.

The Financial Services Authority Plays To The Gallery

GLG Expert Contributor — Fri, 28 Aug 2009 07:22:42 EST

The Financial Services Authority (FSA), fearful of being shut down by the incoming Tory government, has indulged in popular politics and made some suggestions that play to the gallery wrt taxing bankers' bonuses. This suggestion is a non starter, as Britain (like it or not) needs a robust financial services industry, given that it has no manufacturing base to speak of.