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 my dissent at the end).  But my dissent doesn’t take away from the fact that Jim Ohlson and Stephen Penman have provided us with a number of suggestions worth considering — and that can guide some interesting research programs.

The other alternative is provided by FARS Luncheon speaker David Mosso.  Mosso made a number of strong and striking claims about the accounting he would like to see.  I expect his slides to be available soon on the AAA Commons website.  For now, take a look at this summary of his book, “Early Warning and Quick Response,” which David published in the CPA Journal.

It’s worth mentioning that the two frameworks are in direct opposition on a number of points.  The FASC document argues for heavy doses of historical cost accounting, and a focus on core operating income; Mosso argues for fair value almost everywhere, and a focus on the balance sheet.  Maybe you think they are both wrong! Join us for what is sure to be a lively conversation, with lots of research possibilities.

Remember that you can attend Round Table Discussions in Second Life (instructions here) or on the web at our LIVE page.

p.s.  The following week, TAR Senior Editor Steve Kachelmeier will lead a round table discussion. Wednesday, August 19th at 11am.  Look for details right here, soon.

UPDATE:  Mosso’s slides and notes are available on the AAA Commons here.  You need to be registered (and a AAA member) to get to them.  If you are a member, what are you waiting for?

UPDATE:  To prepare for this session, you might also want to take a look at two other posts, Why Do Standard Setters Make Such Awful Decisions, and Dogma!