Following up on my last post, I had a very entertaining discussion with a Very Successful Accounting Researcher (VSAR) last week at the AAA meetings on the topic.  After VSAR criticized some decision or other of the FASB, I asked “Why do standard setters make such awful decisions?”  We were talking in a noisy room [...] Read more > >

Why Do Standard Setters Make Such Awful Decisions?

Everyone, it seems, likes to complain about the decisions of the FASB and IASB.  Some complain that the Boards are too beholden to the wishes of preparers, by allowing them to park debt off their balance sheets, hide volatile income numbers in the Statement of Changes in Shareholder’s Equity (rather than running through earnings), and [...] Read more > >

Mad Lib Earnings!

I just saw this over the weekend in Fortune (see link right here).  Quite funny on how companies report their earnings and how the press reports on them. Is this a testable idea? Probably – the congruence between co. reports and the press reports. Read more > >

Round Table Discussion: Alternative Conceptual Frameworks

Tuesday, August 11th at 4pm we will be discussing two alternatives to the FASB’s Conceptual Framework Project. One is this document from by the AAA’s Financial Accounting Standards Committee, which Jeffrey has already written about.  I dissented from this document, primarily because it didn’t attempt to specify the objectives of financial reporting (you can read [...] Read more > >

Thinking about Alternative Conceptual Frameworks

The AAA’s Financial Accounting Standards Committee recently put together a proposal for an alternative conceptual framework. Conceptual frameworks (CF), by their nature, deal with such fundamental and far-reaching concepts that these types of intellectual ventures are bound to generate disagreement. This proposal is no exception, as evidenced by the dissenting opinions, and is not only [...] Read more > >

History matters … hunh?

At the last round table session, we were discussing something and a comment came up about “history matters….” I was thinking that I should clarify where that comment comes from .. give an example. Just a couple of years ago, I had no idea what that phrase meant. Here goes … Should the accounting differ [...] Read more > >

Bring Us Your Tired, Your Poor….Doctoral Students and Faculty

These are tough times for academic departments around the world.  Hiring is down, budgets are tight, many faculty are already teaching overloads, and workshop series and PhD seminars are often the first to come under the Dean’s scrutiny when looking for places to trim costs. So as the FASRI Editorial Board prepares for the AAA [...] Read more > >