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You need to have accurate balance sheets often to help you manage debt, convert assets into growth, and see detect financial problems before they become too large to manage.
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Mr Bofinger wants outstanding euro-zone public debt converted into "Eurobonds" with collective responsibility.
Creditors will find their debt converted to equity, typically involving a reduction in value.
Investors in such issues will be "bailed in" (their debt converted into equity) if the bank gets into trouble.
(The deal involved buying back $1.8 billion in mezzanine debt, converting $2.1 billion of other debt to preferred equity and extending other loan maturities to 2015).
Holders of the lowest layers of debt in bailed-out banks are likely to see their debt converted into equity and to take losses.
In December, New York Law School refinanced its debt, converting its securities into variable-rate notes secured by a letter of credit, Mr. Matasar said.
The second condition rewards well-capitalised banks by allowing them to avoid the dilutive effect of the forced conversion (the number of shares the debt converts to will be set at a level so as to dilute the value of old equity substantially).
His debt, converted to equity, gave him almost 90% ownership of the company.
Texas Pacific also acquired the firm's $936 million in debt, converted it to equity and guaranteed a credit line of $150 million.
In 2002 it started buying debt of troubled Williams Communications, saw that debt converted to equity in a reorganization and bought more equity.
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CEO of Professional Science Editing for Scientists @ prosciediting.com