April 2009 is promising to be a watershed month for Banking Regulations. Regulations and guidelines are being revisited regarding asset valuations, scenarios to consider while arriving at the capital adequacy and definition of the bank capital itself!
Continue reading "Re-writing Banking Regulations at “Stress” speed" »
XBRL (extensible business reporting language) has been heralded as a technology which will be leading us to a verge of a new era in financial reporting with interactive data that will make the financial reporting processes simple and efficient. While some of the corporate treasurers are slowly getting acquainted with the technology, many finance managers and internal auditors, who will be most affected by it in the coming years, do not seem to be aware of this ground-breaking and innovative technology. The organizations could pursue xBRL not only for compliance but also to help address the issues of current market environment.
Many question whether this deluge of losses is actually necessary. Bankers are pressuring regulators and lawmakers to make adjustments to FAS 157, the mark-to-market accounting rule in the US. Put in place in response to the Enron crisis (Enron overvalued its assets to the point of bankruptcy) mark-to-market accounting requires corporations to value asset at their "fair value"; the price the asset would command on the open market.
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