Yes, Virginia: Recognized Information is Viewed as More Reliable

I presented FASRI’s report on Financial Statement Presentation to the IASB (last Thursday) and to the FASB (yesterday).  The report is based on an experiment conducted with Frank Hodge, Pat Hopkins and Kristi Rennekamp.  Several Board members seemed pleasantly surprised by the ability of the research to address the issues being deliberated, and are clearly [...] Read more > >

Yes, Virginia: Recognized Information is Viewed as More Reliable

I presented FASRI’s report on Financial Statement Presentation to the IASB (last Thursday) and to the FASB (yesterday).  The report is based on an experiment conducted with Frank Hodge, Pat Hopkins and Kristi Rennekamp.  Several Board members seemed pleasantly surprised by the ability of the research to address the issues being deliberated, and are clearly [...] Read more > >

What makes a component of income SPECIAL?

  I thought we had a great discussion last Wednesday  regarding the link between revenues and expenses.  For those who could not attend, you can listen to the archive session.   One of the key results in the Donelson, Jennings, and McInnis paper is that the special items component of earnings has increased recently, and this [...] Read more > >

SEC Concerned about Race to Bottom

The question of whether competition among standard setters leads to improved, high-quality reporting is an oft-debated topic and one that has come up on the FASRI research blog before (you can read the extensive commentary that topic induced here).  While academics might disagree, the SEC has already clearly voiced their concern about competition inducing a [...] Read more > >

Round Table Discussion on SMEs, FIN 48, and Private Company Reporting

On Tuesday, Sept 22nd, 4 pm ET, we will be joined by Paul Glotzer. Paul is a project manager at the FASB and has extensive experience working with small companies.  He is also the key liaison with the FASB’s new advisory group, the Private Company Financial Reporting Committee, and is currently working on, among other [...] Read more > >

University of Texas in Second Life

We have a strong University of Texas presence at FASRI Round Tables (Lisa Koonce and Nick Seybert are UT faculty and regulars at FASRI; Jeffrey Hales, FASB research fellow, is a former faculty member at UT; and this week’s presentation is by the UT faculty trio of Dain Donelson, Ross Jennings, and John McInnis).  However, [...] Read more > >

Did you see this in the New York Times? Blame the accountants

It seems odd that the finger pointing doesn’t stop.  http://finance.yahoo.com/banking-budgeting/article/107711/accountants-misled-us-into-crisis.html Read more > >

More on Litigation-Related Disclosures and Working with the FASB on Research

Yesterday (September 10, 2009), Rob Bloomfield posted regarding a legal perspective on FASB Accounting Standards Codification Topic 450 (FAS 5 – Accounting for Contingencies) and proposed changes in the disclosure rules for litigation-related contingencies.  This post relates to both the FAS 5 issue as well as an earlier discussion regarding conducting research with the FASB. While [...] Read more > >

Congress Wants To See More of Bob Herz

From the Financial Executives Institute blog (now added to our blogroll), passage by the House of the ‘Promoting Transparency in Financial Reporting Act, H.R. 2664: …among other things, PTFRA would require that, beginning in 2009, and for five years thereafter, annual testimony of the SEC, FASB and PCAOB Chairmen (or their designees) would be provided [...] Read more > >

Round Table Discussion on Changes in the Revenue-Expense Relation

On Wednesday, September 16th, 11 am ET, Dain Donelson, Ross Jennings, and John McInnis, all of the University of Texas at Austin, will join us to discuss their recent paper entitled “Changes over Time in the Revenue-Expense Relation: Accounting or Economics?”  Their paper follows the work of Dichev and Tang (2008), who document Read more > >