Delta Airlines

Par-value still has meaning. Delta Airlines is reducing the par value on its common stock.Shareholders also approved a Delta proposal doubling to 900 million the number of shares of common stock it is authorized to issue and reducing the par value of the common stock from $1.50 to 1 cent. The airline, which is incorporated in Delaware, believes the proposal gives it greater flexibility in using

Comeback of the 30-year Bond

Comeback of the 30-year Bond. This article says that the Federal government is considering issuing new 30-year bonds---something it hasn't done since 2001.

Anonymous Letters to Auditors

Anonymous Letters to Auditors. Newsday reports that an anonymous letter to state auditors led to the uncovering of a massive fraud in a Long Island school district.The Roslyn school scandal unfolded last year after an anonymous letter tipped off authorities that top officials had engaged in systemic misspending for a decade. So far, three former district officials -- Superintendent Frank Tassone,

Banks' Loan Loss Reserves

Banks' Loan Loss Reserves. BW online has a commentary about how banks adjust their loan-loss estimates to manage earnings.Last year the banks had an easy way to juice their profits. All they had to do was allocate a little less money to loan-loss reserves -- the money they set aside to cover bad debt. As the economy has improved and defaults have slowed, many decided they didn't need as much in

Leaking the News. MSNBC reports that there was increased volume in the traded options of P&G and Gillette just prior to the announcement of the merger. Well before the investing public learned of the $57 billion takeover of Gillette by Procter & Gamble, traders apparently got wind of the deal: Options-trading volume in both companies spiked more than fourfold on Jan. 27, before news of the

Stock Options. An article at Law.com quotes a couple of lobbyists as saying that they plan to mount an attack on the FASB's new rule requiring the expensing of the cost of stock options. That's likely to be an uphill battle given thatThe SEC has also thrown its support behind FASB.

Donald Nicolaisen, the SEC's chief accountant, said in a prepared statement that companies should focus their

Conservatism is Back. Wary Auditors, Clients Worry FASB's HerzFinancial Accounting Standards Board chairman Robert Herz told the Financial Times he is concerned that auditors as well as the companies they audit are acting too conservatively when preparing financial reports especially given the Securities and Exchange Commission's (SEC) endorsement of a principles-based approach.

Herz contends