Some thoughts about the "income statement view," performance management, and speculation in accounting

One of the points that Stephen made early in his remarks was that while the objectives of financial reporting were fairly non-controversial, they didn’t give one any traction in deciding what sort of accounting we should have. As I listened to the rest of his remarks, I found myself having a similar sentiment about the [...] Read more > >

Some thoughts about the “income statement view,” performance management, and speculation in accounting

One of the points that Stephen made early in his remarks was that while the objectives of financial reporting were fairly non-controversial, they didn’t give one any traction in deciding what sort of accounting we should have. As I listened to the rest of his remarks, I found myself having a similar sentiment about the [...] Read more > >

Round Table Discussion on Bridging Accounting Practice and Scholarship

On Tuesday, Nov 17th, 4 pm ET, we will be joined by Susan Krische (University of Illinois at Urbana-Champaign).  Susan recently returned from an academic fellowship with the Office of the Chief Accountant at the Securities and Exchange Commission.  In light of her experience at the SEC, Susan will be leading a discussion on how [...] Read more > >

FASB Now Taking Applications for Research Fellowship

As you probably are aware, the Financial Accounting Standards Board recently instituted a Research Fellow Program. This program allows for one academic researcher (like myself) to come to the FASB each year for a 12-month position. In my opinion, having an academic researcher in house is an excellent way to both encourage new policy-oriented research [...] Read more > >

Feedback on Stephen Penman Roundtable

The roundtable discussion with Stephen Penman yesterday was quite good.  Lots of good discussion in both voice and typed chat.  One thing I learned is that Stephen stresses subjectivity as a reason behind his views. While I am convinced that Stephen dislikes some forms of subjectivity, I think his views are more subtle than this.  Read more > >

AAA-FASC Writes Congress on Perlmutter Amendment

Here is the text of the letter the AAA Financial Accounting Standards Committee sent to Barney Frank and Spencer Bachus opposing Perlmutter’s amendment, which would allow a newly-created systemic regulator to override GAAP to achieve the goals of financial stability.  Are there any academics who would support such a proposal?  If you disagree with the [...] Read more > >

AICPA Opposes Perlmutter Amendment

I just received an email from the AICPA with the Perlmutter (D-CO) amendment to the Financial Stability Improvement Act of 2009, which gives Congress the right to override GAAP they don’t like.  Not surprisingly, the AICPA opposes it.  Here is the amendment, in all its glory (emphasis mine): “SEC. 1103. PRUDENTIAL OVERSIGHT OF ACCOUNTING PRINCIPLES [...] Read more > >

Penman on Financial Statement Presentation

In preparation for his FASRI Roundtable discussion, Stephen Penman has helpfully shared his CEASA White Paper on Financial Statement Presention, which you can download here. The paper discusses disaggregation in some depth, providing guidelines for how line items should be disaggregated on both the income statement and the balance sheet.  I need to read more [...] Read more > >

Stephen Penman Leads Roundtable Discussion

You may know Columbia Business School Professor Stephen Penman as the 14th-most downloaded author on SSRN.  Or you might know him as a Director of the Center for Excellence in Accounting and Security Analysis. Or perhaps as author of Financial Statement Analysis and Security Valuation. More recently, Stephen has been visible as a critic of [...] Read more > >

A new article on FV accounting

Very interesting. http://hbr.harvardbusiness.org/2009/11/is-it-fair-to-blame-fair-value-accounting-for-the-financial-crisis/ar/1?cm_mmc=npv-_-HBR_UPDATE-_-2009-_-NOV Read more > >