scam yuga

hardly had the world recovered from the "break in trust/ regulation scam" (Enron, Barings, LTCM etc) that the sub-prime has hit, the next one already is under action - THE BAILOUT - where is all the money actually going to roost? i am sure the answers would be very interesting and as tax payers worldwide have a right to know - waiting for the "true leader" among men to call out the emperors new clothes.

IFRS and (un)fair value

Ever since the dialouge started in india on IFRS and the debate to converge was on, my recommendation is to allow it as an "analyst" tool and nothing more. Accounting is to follow the historical concept with asset writedown as and when the same is impacted in the opinion of the auditor/ management by a permanent event which has reduced its value.
The fair value concept allows more "ad hoc" methods to be adopted as there are multifarious methods of valuing various assets. It is heartening to know that the very advocates of "fair value" are now calling for a review of this concept as the current "credit crunch" forces banks and financial institutions to "write down" their assets as there is no liquidity for these investments and hence rather difficult to ascertain their fair value!!
The other major issue is that of ESOPS being charged to revenue - this is basically a revenue neutral transaction as far as the company is concerned and it only impacts the shareholders - so other than creating secret reserves and artificially reducing the profits in the books of companies this hasnt really helped.

who is James Otis?

"James Otis has set conditions before the Indian government in order to withdraw Gandhi's items from the auction, if the Indian government agrees either to spend more on healthcare for the poor or support educational events to promote Gandhi's principles of non-violence in 78 (the years Gandhi lived) countries across the world. He also wanted the Indian government to cut its military spending. The letter was sent to the Indian Consulate General in New York and forwarded to the MEA in India. The items that will go under the hammer include Mahatma Gandhi's metal-rimed spectacles, pocket watch, a pair of sandals, a bowl and a plate. The items have a reserve price of between $20,000 and $30,000."

The buzz for the past week has been this man James Otis - the more one hears and reads about him you have to but just wonder. The mysterious hand of "god" (fate) might just prove to be greater than the "hand" which has been with the "aam aadmi" in the upcoming elections.

James Otis for PM anybody?