Volokh Conspiracy Lawyers Lend FASRI a Hand

Last week I suggested you take a look at how lawyers view accounting, courtesy of the popular and thoughtful legal blog, The Volokh Conspiracy.  This week, I am glad to report that conspirator (and American University law professor) Kenneth Anderson has given me the opportunity to write a guest post getting lawyers insights into a [...] Read more > >

Fed Accused of Academic Capture–Is FASB next?

Economist-bashing has been a popular sport lately, with current criticism coming from the left.  Paul Krugman weighed in with a long piece in the New York Times, and now the Huffington Post has an article claiming that the Federal Reserve has quashed research critical of its policies by spreading around lots of money and prestige.  [...] Read more > >

Fair Value Quiz

What industries have the largest percentage of their assets measured under fair value standards?  Whisper your answer to the person sitting next to you before clicking to see the answer, courtesy of this paper by Gartenberg and Serafeim of HBS. Read more > >

In Praise of Mark-To-Management

Georgetown finance professor James Angel has written an interesting piece praising the benefits of what he calls mark-to-management (or what we fair value wonks would call Level 3 inputs), and argues the benefits of including all three dimensions of valuation (cost, market price and management models) in disclosures.  Of course we can’t recognize all of [...] Read more > >

Required FV disclosures — do we have inconsistency in measurement?

Do we have inconsistency in application of FV measurement?  No surprise I guess.  Note this:  Beginning in Q2 2009, the fv of companies’ loan portfolios was a required quarterly disclosure.  Previously, it was only an annual disclosure. Review some banks.  You might find a huge discrepancy in the fraction .. fv/carrying value.  Certainly banks have [...] Read more > >

FASB Proposes Update to Fair Value Disclosure Requirements

FASB is circulating an Accounting Standards Update that would clarify required disclosures about fair values.  Particularly noteworthy is that the Update proposes a detailed “roll forward” of fair value measurements using significant unobservable inputs (“Level 3″), which would provide a clear breakdown of how the total level 3 measurements changed as a result of: transfers [...] Read more > >

Take a Break — and See How Lawyers View Accounting

We were going to have a Round Table discussion this coming week, but Labor Day has messed things up a little.  So instead, click on this link to see how lawyers view accounting, courtesy of the excellent law-professor blog The Volokh Conspiracy.  Lesson 1 is:  most of them know surprisingly little, even if they are [...] Read more > >

History Lesson

This is a guest post by accounting historian Steve Zeff.  The title is mine, though.  This article by Steve is recommended for those who want their history lesson extended– RJB There has been some discussion of “matching” and the income statement v. balance sheet approaches. Jeff Wilks wrote, “I’d just love to see someone explain [...] Read more > >

Teaching SCF and need a nugget on cash equivalents – see attached.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a0kvXdQtvCWw Read more > >

FASB-Friendly Research Report on Financial Statement Presentation

To prepare for tomorrow’s round table discussion (Wed Sept 2, 11am ET) on FASRI’s Financial Statement Presentation research, take a look at this report on an experiment I conducted with Frank Hodge, Pat Hopkins and Kristi Rennekamp.  A few points I’d like to make off the bat: Read more > >