IMO, Barron's and its "feeder funds" are irrelevant when questioning the accounting treatment of LNCO/LINN derivatives.
Isn't KPMG, their auditors, responsible to ensure that the financial statements (including derivatives), are fairly presented under GAAP (not non-GAAP accounting). Have not a slew of investment banks on both sides of the LNCO (LINN) / BRY deal not vetted this whole thing?
Are controls lacking, as required per SOX404, that should have resulted in a material weakness?
Is Barrons (and the media) and Hedgeye along with all shorts saying management and auditors are all incompetent?
Or maybe the US financial system, wall street and everyone feeding the system are making it into a bigger problem than it really is for personal gain.
I do find it odd that the SEC is taking on a "non public" inquiry. I ask of what? It is unclear.
Wasn't the SEC already going through the documents for the deal anyway?
Why did LNCO/LINN disclosure the "non-public" inquiry?
Maybe the issue is a FASB issue and that derivative accounting has become a joke.
Oh well, here comes more rule based GAAP accounting for the entire derivatives market.