Very Brief IFRS-Convergence Survey

The Accounting Onion (longtime member of our blogroll) has a very short survey on people’s views about international convergence of accounting standards to IFRS.  At only 12 questions long, it only takes a few minutes of your time.  I am sure your input would be valued. Read more > >

Behavioral and Experimental Finance

I was asked to write two chapters for a Wiley book called Behavioral Finance, and for some reason I said yes.  Neither chapter is a typical review paper.  Behavioral vs. Traditional Finance will be Chapter 2 of the book, and sets the stage by viewing the conflict between the subfields in light of the philosophy [...] Read more > >

What Do Standard Setters Optimize?

It is the rare academic article that explicitly considers the objective function of the regulator.  William Bratton is a law professor from Georgetown who takes exactly this focus, and will joins us at the FASRI Roundtable on Wednesday, October 14th at 11am ET to lead us through the thicket of political pressures and machinations that [...] Read more > >

New Revenue Recognition Rules and Tech Firms

A student of mine brought to my attention an article in the Wall Street Journal September 24, 2009, “Investors Should Focus on Apple’s Core.”  In that article, Martin Peers points out that existing guidance for firms who have products that combine hardware and software, like Apple’s iPhone, required firms to obtain specific evidence about the [...] Read more > >

Does an asset-liability approach inevitably lead to fair value?

I’ve heard some people express the opinion that the FASB’s recent emphasis on an asset-liability approach is just a thinly veiled attempt to move financial reporting more in the direction of fair values. Ignoring the fact that the primacy of assets and liabilities is as old as the conceptual framework itself, I think recent evidence [...] Read more > >

The Asset-Liability Approach: Primacy does not mean Priority

By now, most academics with an interest in standard setting are aware that the FASB and IASB view assets and liabilities as ‘primary’ elements of financial statements, from which income is derived.  However, it is all too easy to see primacy as indicating importance, which I suspect Kothari, Ramanna and Skinner have done in their [...] Read more > >

Unabashedly Normative

Once upon a time, almost all accounting research used armchair reasoning to support claims about what Generally Accepted Accounting Principles should look like.  But in 1968, Ball and Brown published a paper that started a trend toward systematic collection of evidence on how financial information is used.  I always thought that the ultimate goal  was [...] Read more > >

A Discussion on the Discussion Following 'What Should GAAP Look Like?'

The JAE Conference closed with a contentious discussion of Kothari, Ramanna and Skinner’s paper “What Should GAAP Look Like?”  I have a lot to say about the substance of this and other papers, but that will have to wait for later posts.  (I will probably be posting about the conference for much of the coming [...] Read more > >

A Discussion on the Discussion Following ‘What Should GAAP Look Like?’

The JAE Conference closed with a contentious discussion of Kothari, Ramanna and Skinner’s paper “What Should GAAP Look Like?”  I have a lot to say about the substance of this and other papers, but that will have to wait for later posts.  (I will probably be posting about the conference for much of the coming [...] Read more > >

H1N1, Universities and Virtual Worlds

Just in case anyone is interested, I just received the following announcement from the University of Michigan.  If you have Second Life installed, you can attend by clicking this link. Today  .. Oct 2nd at Noon ET -  Join Perplexity Peccable for a most interesting and relevant discussion event ::: on how to use Second [...] Read more > >