The paper analyzes proposed accounting for financial instruments, specifically the practice of a debtor reducing the carrying value of debt and recognizing a gain as the debtor's own credit quality deteriorates. A numerical example based on Boston Chicken in 1997 shows how several common ratios provide opposite signals under current versus proposed accounting. A discussion of the example raises...

In recent years there has been a trend towards market consistent valuation in those institutions for which actuaries have responsibilities. The larger United Kingdom with-profits insurance companies are now preparing realistic balance sheets, both for internal purposes and also at the request of the Financial Services Authority. International accounting standards have been moving to a fair valu...

We consider repeated zero-sum games with incomplete information on the side of Player 2 with the total payoff given by the non-normalized sum of stage gains. In the classical examples the value VN of such N-stage game is of the order of N or √ N as N → ∞. Our aim is to present a general framework for another asymptotic behavior of the value VN observed for the discrete version of the financial ...

Changes in credit risk may arise when either the value or the risk of corporate assets changes. Changes in the equity value associated with the changes in the asset value and changes in asset risk can be characterized into potentially countervailing direct and indirect effects. The indirect effect of risk on equity value is a function of factors that affect the debt value of including leverage,...

background provincial health accounts (pha) as a subset of national health accounts (nha) present financial information for health sectors. it leads to a logical decision making for policy-makers in order to achieve health system goals, especially fair financial contribution (ffc). this study aimed to examine health accounts in kerman province.   methods the present analytical study was carried...

We study the role of executive functional background in explaining management discretion in financial reporting. Taking goodwill impairment as our reporting setting, we focus on top executives (CEOs and CFOs) whose employment history includes experience in investment banking, private equity, venture capital or management consulting, as we expect these executives to have unique human capital and...

In this paper we address the issue of how to establish the fair value of an insurance-linked liability. This is done by considering the introduction into a simple, one-period market model of a new and quite general security (which, amongst other things, could be such a liability). We investigate the impact of this new security on the market and attempt to predict the price (the fair value) at w...