What is Repo 105? That is the accounting issue behind the lawsuit against Ernst & Young by the New York Attorney General over the Lehman collapse. For a great explanation (with great illustrating spreadsheets), check out an article by Professor David Albrecht, Repo 105 Explained With Numbers and Detail.
Summary of his article is that the accounting by Lehman was in accordance with GAAP, but the GAAP on this issue stinks. I can’t comment directly on the Repo 105 issue without more study. However, I think that his conclusion would apply to a lot of places in the accounting literature.
I’ve just started reading the professor’s blog. Lot’s of great posts I’ll share later.