The politics of health care generate excitement about accounting rules
WHEN the American economy sickens, there is nothing Congress likes more than to call in a few chief executives for hearings in which politicians can upbraid big business. On April 21st the Energy and Commerce Committee of the House of Representatives will excoriate the latest bunch of hapless bosses: those who had the temerity to apply accounting standard ASC 740.
That is the rule under which several big firms have tallied billions of dollars of new costs stemming from the recent passage of the health-care reforms championed by Barack Obama. The biggest write-down so far has been the $1 billion booked by AT&T, followed by one of $970m at another telecoms giant, Verizon. Boeing, an aerospace firm, has announced a $150m charge, as has John Deere, a maker of farm equipment. Caterpillar, which makes construction and mining gear, has taken a $100m hit. …



