The Financial Accounting Standards Board (FASB) issued a proposal for public comment that would, among other things, eliminate the pooling of interests method of accounting for business combinations. The move is directed at enhancing economic accountability and could act as a curb on questionable transactions. As part of its public consideration of the issues, the Board also will hold hearings on the subject early next year in New York and San Francisco. Comments on the proposal are requested by Dec. 7.
Financial
Articles from Financial
FASB Ponders Eliminating ‘Pooling of Interests’
The Financial Accounting Standards Board (FASB) issued aproposal for public comment that would, among other things,eliminate the pooling of interests method of accounting forbusiness combinations. As part of its public consideration of theissues, the Board also will hold hearings on the subject early nextyear in New York and San Francisco. Comments on the proposal arerequested by Dec. 7.
Lender’s Call for Faster Coho Payments
The financial troubles of Coho Energy reached a new level lastweek as the Dallas-based company received a formal notice from itslenders that the obligations under its $240 million credit facilityhave been accelerated and the lenders intend to exercise all rightsand remedies to satisfy those obligations.
BP Amoco to Cut More Jobs Despite Strong 2Q99
Not even the best financial quarter since the fourth quarter of1997 could prevent BP Amoco from following through with itsjob-cutting plan as the company said it will cut 2,000 morepredominantly US jobs before the year is over. The integratedenergy giant has already slashed 12,500 jobs from the pay roll. Itwould not elaborate on which US jobs would be eliminated.
Low Utility Returns Drive Convergence
Convergence is going to continue in the energy industry becauseit is what customers and financial markets want; the market signalsare unmistakable, according to an industry representative and aninvestment funds manager.
Virginia Gas Co. Explores Strategic Options
Virginia Gas Co., a small integrated natural gas companyoperating in the southwestern tip of Virginia, has selectedOppenheimer Corp. as its financial advisor to conduct an evaluationof the company, its subsidiaries and affiliates, and strategicalternatives available.
Virginia Gas Co. Explores Strategic Options
Virginia Gas Co., a small integrated natural gas companyoperating in the southwestern tip of Virginia, has selectedOppenheimer Corp. as its financial advisor to conduct an evaluationof the company, its subsidiaries and affiliates, and strategicalternatives available.
Year-End Financial Reports are a Testament to Industry Woes
The returns are coming in, and it’s safe to say 1998 was a year the energy industry – particularly producers – would like to forget. Not all energy sectors suffered equally, but shareholders in every energy province have something to grouse about judging from earnings releases and analyst reports.
Briefs
Houston Industries Wholesale Energy Group has opened an officein the financial district of San Francisco to help coordinate thecompany’s California generation, power marketing and associatedregulatory activities. “Houston Industries is a major player inCalifornia energy markets with nearly 4,000 MW of power generationcapacity and more scheduled to go on line in the region in 1999,”said Charles Oglesby, chairman of the HI Wholesale Energy Group.Mark Davis, regional marketing director, opened the San Franciscooffice in November.
Star Watch: Columbia, El Paso, Enron
The current financial stars in the pipeline firmament areColumbia Energy, El Paso Energy and Enron Corp., while distributorsto watch are AGL Resources, MarketSpan, Peoples Energy and UGICorp., according to Curt Launer, vice president of Donaldson,Lufkin & Jenrette.Prospects are good for the companiesnamed, although a biannual report by the New York investment houseshows the overall interstate gas pipeline group “has not been doingvery well” so far in 1998, with stock prices significantlyunderperforming the Standard & Poor’s 500 Index.