IMA Wants Liabilities and Equity Accounting Corrections
Fixing the accounting guidance to distinguish between liabilities and equity should be the Financial Accounting Standards Board’s (“FASB”) top priority, says the Institute of Management Accountants (“IMA”). Last week, IMA representatives voiced their opinions to FASB members on Topic 480, Distinguishing Liabilities from Equity. Critics have called the standard complex and flawed, while the FASB’s attempts to amend the guidance have fallen short. The most recent attempt began in August, as part of an Invitation to Comment to determine whether the FASB should address topics of major concern. The liabilities and equity accounting guidance was one of the topics included.. Read More.