S&P mulls the new accounting proposals

From PropertyCasualty360:

A recent analysis from Standard & Poor’s concludes that “changes in interest rates could cause potentially significant swings in earnings and capital.”

The ratings firm said that although its credit analysis focuses on the financial condition of a company regardless of accounting, changes like a new format for the balance sheet, income statement or disclosures “may bring to light information that we would need to consider in our analysis,” S&P said.

Other insights:

  • The proposals would allow better comparisons of insurers in different countries.
  • Long-term historical comparisons would be difficult, since the new standards are radically different.

S&P is the first I’ve seen to acknowledge the QWERTY problem: Current standards are flawed but sophisticated users know how to adjust for them. And a change creates a steep learning curve.

Like most, though, S&P seems to believe the new standards are worth the effort.


One thought on “S&P mulls the new accounting proposals

  1. […] This post was mentioned on Twitter by Reactions and Jim Lynch, Jim Lynch. Jim Lynch said: S&P mulls the new accounting proposals: http://wp.me/pSIxF-IA […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: