The Whitlock Company, CPAs and Consultants, Springfield Missouri

On May 6, 2009 public accounting firm, Grant Thorton sent a letter to Timothy Geithner, Ben Bernanke and Sheila Bair addressing bank capital requirements and the allowance for loan losses. I believe that this letter completely explains the auditor’s viewpoint on these two issues and offers the regulators a solution to protecting banks from future losses.

Standard-setters have moved on from fixing fair-value rules and have set their sights on off-balance-sheet accounting and loan-loss provisioning.

Revisions to how companies account for off-balance-sheet items and loan-loss provisions will knock fair-value accounting off the front page with respect to financial reporting, according to James Kroeker, acting chief accountant at Securities and Exchange Commission.