SFAS 150's Unintended Alchemy: Turning Positive Into Negative

Sinnett, William M.
December 2003
Financial Executive;Dec2003, Vol. 19 Issue 9, p40
Academic Journal
This article presents the reactions of members of the Financial Executive Institute (FEI) to the implementation of the Statement of Financial Accounting Standards (SFAS) No. 150 issued by the Financial Accounting Standards Board in the U.S. The author discusses issues on mandatorily redeemable preferred stock and offers a description of privately held companies affected by the standards. The author also reports on some of the concerns of companies over the adoption of SFAS 150. The author notes that one major concern is that this rule does not acutally present an improvement in financial reporting and that it actually portrays companies that are consistently profitable as having a negative net worth. INSET: Types of Audit Options.


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