November 1, 2001(PLANSPONSOR.com) - Ameritrade
Holding Corporation and GMAC Bank have teamed up to provide a
suite of online brokerage and financial capabilities to
employees, retirees, shareholders and customers of General
Motors/GMAC.
The two companies unveiled a co-branded Web site, which
will allow participants to purchase stocks and mutual funds
through the Ameritrade Brokerage trading platform.
The deal mirrors one announced recently between rival
Ford and TD Waterhouse.
FASB Says Attack After "Math" Not Extraordinary
Item
October 1, 2001(PLANSPONSOR.com) - The Financial
Accounting Standards Board (FASB) has decided against the use
of an 'extraordinary item' treatment for losses incurred in
connection with the recent terrorist attacks.
In accounting terms, an extraordinary item is defined as
non-recurring event that materially affected a company’s
finances in a reporting period. An explanation of the item
must be provided in a company?s annual or quarterly
report.
Entries classified as extraordinary are shown on the
income statement net of tax effects and after a subtotal
income before extraordinary items.
At a meeting on September 20, the FASB had tentatively
concluded that some losses, precipitated by the events of
September 11, should be shown as extraordinary and began
efforts to clarify what losses should fall into this
category.
Turnaround
However at a later meeting it was decided that
extraordinary item treatment should not be used.
The FASB?s Emerging Issues Task Force took the view that
the far-reaching effects of the attacks, coupled with an
already weakening economy, would make capturing the
resulting economic effects in companies’ financial
statements problematic (see
FASB Task Force Focuses on Attack Impact
).
Further, the economic effects of the events were so
extensive and pervasive that it would be impossible to
capture them in any one financial statement line item and
that showing any part of the effect as an extraordinary
item would hinder, rather than help effective
communication.
FASB
The Financial Accounting Standards Board establishes
standards of financial accounting and reporting. Those
standards govern the preparation of financial reports and
are officially recognized as authoritative by the
Securities and Exchange Commission and the American
Institute of Certified Public Accountants.