Adjustments required for accruals prepayments bad debts etc

Note: Register for this month’s CLE, “Current Developments in Tax Law,” from 1-2 p.m. ET on Wednesday, Nov. 18.Despite recent murmurs that the recession may be easing its grip on the United States, debt continues to sap the financial strength of millions of families and businesses around the country.Home foreclosure is one of debt’s most wrenching symptoms. In August, according to RealtyTrac, foreclosure filings were reported on 358,471 properties. That number amounts to one of every 357 housing units in the country.There was a smidge of good news. Filings were down 1 percent from July. Still, there were 18 percent more than in August 2008.Meanwhile, August consumer bankruptcy filings totaled 119,874, an increase of 24 percent over the number of filings in August 2008,according to the American Bankruptcy Institute, a nonpartisan organization that analyzes issues relating to insolvency. Here, too, there was a little bit of good news: The number of bankruptcy … [Read more...] about The Bad-Debt Blues

Despite recent improvements in India’s economic stability, the hangover from India’s credit fueled boom isn’t over yet. Estimates of the percentage of bank loans that are “impaired” — where repayment of the loan is classified as doubtful — run as high as 9%.  Following the global financial crisis in 2008 and 2009, India joined countries around the world in rapidly pumping money into the financial system to prevent a prolonged global recession. The strategy of cheaper and more available money, much of it flowing through India’s banks, succeeded and resulted in the country’s growth.  However, overreliance on interest-rate sensitive bank loans, slowing global GDP growth rates, and uncertain domestic economic policies exposed the vulnerabilities of India’s banks.  Bad debts and missed loan repayments started to pile up quickly.  The consequences of shortcomings in the insolvency process are … [Read more...] about Revamping India’s Bankruptcy Laws: A Way Out of India’s Bad Debt Problem

A Missouri attorney who was already on probationary status because of being behind on his debt payments has now been suspended from practice for failing to comply with a repayment plan.Derrick R. Williams Sr. of Cape Girardeau was suspended Friday by the Missouri Supreme Court for failing to file quarterly reports and failing to remain current with his debt payments, as required by the rules of his probation, according to the Southeast Missourian.He must reportedly must now wait one year before applying for reinstatement.Williams could not be reached by the newspaper for comment. … [Read more...] about Bad Debts Earn License Suspension for Missouri Lawyer

So whether they are actively recruiting these low-income students for reasons of open-the-door altruism or keep-the-lights-on capitalism — or, more likely, some combination of the two — there has been a huge, largely hidden byproduct of this dramatic increase in access: These students are often being loaded up with staggering debt that is completely out of whack with the earnings boost they’ll likely get from a degree at a nonselective or less selective college. Already, average student loan debt is higher in Boston than any other metro area in the country, 44 percent above the national average, according to Credit Karma. But  more troubling, many of these low-income students — and, at some colleges, most of them — are not graduating. That means these non-completers are leaving campus saddled with lots of debt but none of the salary gains that traditionally come with a bachelor’s degree. RELATED STORY: Poor at an Ivy League school Dean College … [Read more...] about The college debt crisis is even worse than you think

NFA’s New Customer Protection EffortsNFA recently proposed enhanced financial reporting obligations (2016 Proposal) for commodity pool operators and commodity trading advisors that are registered with the US Commodity Futures Trading Commission (CFTC) and are members of NFA (CPO/CTAs).[1] The 2016 Proposal appears to follow along the same vein as NFA’s concept release on customer protection issues in which NFA requested comment on the imposition of minimum capital requirements on CPO/CTAs, among other regulatory initiatives (Concept Release).[2] While the 2016 Proposal is less burdensome than the Concept Release, it is significant in that NFA would have a more granular view of CPO/CTAs’ finances.NFA would use this new financial information (consisting of asset/liability and revenue/expense ratios) to determine a CPO/CTA’s financial risk profile and to identify CPO/CTAs that may be facing financial difficulties. Although NFA would not mandate that a CPO/CTA … [Read more...] about NFA Proposal Would Require CFTC-Registered Asset Managers to Report on Financial Condition