Taxpayers currently accounting for
stated interest on short-term consumer loans under the Rule of 78s method may automatically change to the constant yield method under the general automatic method change procedures of Rev.
In addition, in making the distinction between the "character" of an item and the "method" of accounting for
it, the courts have recognized that, although there may be a timing effect from the recharacterization of an item, that consequence is a result of the recharacterization and does not, in and of itself, constitute a change in method of accounting within the meaning of section 446.
Smith is pleased with their work and their ability to reduce the company's foreign-exchange exposures, except for the inability to gain hedge accounting for
the forecasted sales of the German subsidiary.
Because of the intricacies of the accounting for
these notes, Merrill is not always permitted to mark these instruments to market in their entirety.
Government counsel argued that, even so, the taxpayer should not be permitted to change its method of accounting for
the assignments because it did not ask for permission.
SFAS 52 deals with foreign currency transactions, including accounting for
foreign-currency forwards and currency swaps, and SFAS 80 addresses the accounting for
regulated interest-rate and commodity futures contracts.
FASB IS CONSIDERING ELIMINATING POOLING of interests as a method of accounting for
a business combination on January 1, 2001.
Financial analysts are not clamoring for formal accounting for
marketable debt and equity securities at market prices, and some are even opposed to formal mark-to-market accounting.
90-63 (concerning changes in method to accounting for
package design costs) contains similar guidance.
In addition, the accounting for
some leases that continue to be treated as operating leases should be changed to accrue total rent expense on a straight line basis over the lease term rather than recording actual rent paid under these leases.
From a financial reporting perspective, the FASB project on accounting for
the retirement of long-lived assets will have a significant impact on how the electric utility industry accounts for this often rigorous process.
You can find most of the authoritative guidance in FASB Statements 52, Foreign Currency Translation, for hedges of foreign currency items, and Statement 80, Accounting for
Futures Contracts, for futures contracts used as hedging instruments.