Permissible Securities Activities of Commercial Banks Under the Glass-Steagall Act (GSA) and the Gramm-Leach-Bliley Act (GLBA)

We discussed differential reporting in Chapter 1. Essentially, if an organization has no pub- lic accountability and all owners consent, including those not otherwise entitled to vote, simpler accounting rules may be adopted in certain areas. Remember that the entities that are eligible for this GAAP treatment are private com- panies—those with no shares or debt traded on public markets. Usually, this is the smaller business sector, but not always. There are some large private companies in Canada. For these companies, if the equity holders all agree, the cost of more complex accounting standards can be avoided. The benefit of information provided is not worth the effort....
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Permissible Securities Activities of Commercial Banks Under the Glass-Steagall Act (GSA) and the Gramm-Leach-Bliley Act (GLBA)