Leases and credit ratings

Thanks to Danielle Zeyher, FASB project manager, and all who participated in a lively and informative FASRI round table on proposed new lease accounting standards. The FASB and IASB are preparing what could be a giant step that would bring more than $1 trillion of debt onto balance sheets of public U.S. companies alone (e.g., The Analyst’s Accounting Observer, [...] Read more > >

Leases round table today at 4pm ET

Just a quick reminder that you can tune in to the leases round table today at 4pm eastern time. Danielle Zeyher, FASB’s manager of the leases project, will be with us to discuss the key differences between current GAAP and the new accounting policy proposed in the currently circulating exposure draft. We will also focus on how [...] Read more > >

Is Microsoft getting out of the software business?

I used the 2009 Microsoft financial statements in class yesterday (well just the balance sheet and contractual obligations footnote). Interesting item on the balance sheet- securities lending payable. Maybe I missed it but the footnotes were pretty bare on discussing this. My understanding of this transaction is that the company (in this case, Microsoft) will [...] Read more > >

Survey on Financial Instruments Accounting

Accounting for financial instruments has been a tough issue for a long time, and the recent financial crisis has heightened concerns.  My guess is that a number of academics are working on research projects related to accounting for financial instruments.  In many cases, I bet the authors would like a convenient document they could cite [...] Read more > >

FASB Issues SFAC 8

The Financial Accounting Standards Board continued making progress on its Conceptual Framework Project by issuing a new concept statement earlier this week. The Conceptual Framework Project is a joint effort with the IASB, aimed at producing a signal framework that both Boards could use in developing (ideally converged) standards. This new concept statement, SFAC 8, [...] Read more > >

The Implications of Market (In)Efficiency for Standard Setting

Bob Lipe brought up the Kothari, Ramanna and Skinner paper presented at last year’s JAE Conference.  I’m pining today because I am unable to attend this year’s conference (typically one of my favorites), so I will console myself with commenting on their revision of the KRS paper.  I am hoping the authors will reconsider these [...] Read more > >