By Michael Cohn, includes “Governments that default on their sovereign debt could be falling victim to the absence of accrual accounting in most public sector entities, and the International Federation of Accountants wants to change that. IFAC noted that Argentina’s most recent default adds to a long list of government defaults, bailouts and restructurings over the years. It also serves to highlight the fact that sovereign debt problems that were evident during the recent global financial crisis continue to exist. Argentina petitioned the International Court of Justice last week to allow it to sue the U.S. government to resolve a long-running dispute with a group of U.S. hedge funds that have refused to agree to a deal to restructure the country’s debt after an earlier default in 2001. The dispute led the country to default on its debt again at the end of July. …”
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