A new report from the Investor Environmental Health Network (IEHN) warns that billions of dollars in potential asbestos-like litigation risks for nanotechnology companies and investors are now hidden due to weak regulations governing disclosures of liabilities. According to the report, some of the nanotechnologies are now commonly found in sunscreen, cosmetics, food, clothing, sporting goods and packaging are showing signs of posing serious hazards to human health and the environment.

The good news for investors is that the U.S. Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) are now in the process of examining disclosure requirements and …read more

Accounting rules have been in the news a lot lately. One in particular, the mark to market rule, has become something of a scapegoat for the current economic crisis. I thought we’d take a step back today and look at the purpose of accounting standards and their role in our free market economy.
Why Do We Need Accounting Standards and Where Do They Come From?
To ensure uniformity in financial statements, publicly traded companies must follow a set of rules known as the generally accepted accounting principles (GAAP). Basically, GAAP is designed to help investors (including bankers) compare financial apples to …read more

With the economy in turmoil and the U.S. auto industry using words like bankrupt and restructure, doubt grows every day about whether or not companies are operating as a ‘going concern’. This accounting term simply means that the business is expected to continue into the foreseeable future.
Of course we can’t really predict the future of any company so we have regulations. The rules state the a company is not a going concern if management plans to liquidate the entity or cease operations, or has no realistic alternative but to do so. Since the future is a long time, …read more