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The Dow 30’S Compliance With The Provisions Of Sfas 159 And 157 For Investments In Equity Securities, Veliota Drakopoulou
The Dow 30’S Compliance With The Provisions Of Sfas 159 And 157 For Investments In Equity Securities, Veliota Drakopoulou
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Although, SFAS 159 has raised the bar for disclosure requirements and improved investors, analysts, and financial statement users understanding of managements’ rationale for implementing the Fair Value Option (FVO) for equity securities, it has been criticized to prospect entities to structure transactions that are intended to lever a specific accounting effect. Companies by appointing the fair value option for underwater investments in certain securities can move those securities from the available-for-sale and held-to-maturity categories into the trading category and record the unrealized losses as an essential portion of the cumulative-effect adjustment to retained earnings without reproducing any losses on the …