Private Companies Despair Over SFAS 150

Shepler, Bob
October 2003
Financial Executive;Oct2003, Vol. 19 Issue 7, p68
Academic Journal
The article presents information on Standard 150 issued by the U.S. Financial Accounting Standards Board which deals with accounting for certain financial instruments with characteristics of both liabilities and equity. The author discusses some of the implications of the rule, noting that it will require private companies to reclassify their equity that may place them at a disadvantage to their public company competitors. The author also adds that the ruling may result in private companies giving an overly pessimistic picture of their financial position that could prohibit them from bidding on government contracts or even prevent them from obtaining bank loans.


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