Disclosure and the FASB

Not only will I be blogging about the Unit of Account / Disaggregation / Net vs. Gross / Whatever Words you Use, but I also will be posting about the FASB’s new disclosure project. So, what do you say when you teach your classes?? Probably what I say “oh yes and there are disclosures.. mumble [...] Read more > >

OCI Presentation Project Is the Tip of the Iceberg

The FASB just issued an accounting standards update concerning the presentation of comprehensive income.  Under prior guidance, companies can report comprehensive income in three ways.  The update eliminates one option – reporting the details of other comprehensive income in the statement of changes in stockholders’ equity.  The update continues to allow reporting in either a [...] Read more > >

Good Book versus Bad Book

No I am not going to do a book review on financial instruments. This is an interesting concept being considered as part of the financial instrument project. As many of you already know, the FASB is attempting to develop a single impairment model for financial instruments. In January, the Boards issued a supplementary document that [...] Read more > >

When did Standard Become a Noun?

Talk to an academic my age or older, and right along with “get off my lawn” you’ll hear comments like “kids these days never read anything published more than five years ago.”  This is often true in research (outside of doctoral seminars), but is even more true about standard setting. After all, how could something [...] Read more > >

Permanent and transitory earnings: where did we get these terms?

In 1957, the Princeton Press published Milton Friedman’s famous book, A Theory of the Consumption Function.  An interesting assumption underlying the theory is that “the transitory components of consumption and income can be taken to be uncorrelated with the corresponding permanent components and with each, other.” One of the key inferences is that permanent (smoothed) consumption [...] Read more > >

Boards Decide to Re-expose Revenue Recognition

In a press release issued today, the FASB and IASB announced their decision to re-expose the revenue recognition proposal. In their own words: It was the unanimous view of the boards that while there was no formal due process requirement to re-expose the proposals it was appropriate to go beyond established due process given the [...] Read more > >

Book well worth buying

I just got my copy of the FINANCIAL INSTRUMENTS: A comprehensive guide to accounting and reporting -2011 CCH publication, authored by Rosemarie Sangiuolo, Scott Taub, and Leslie Seidman. You might recall that last year I was struggling with the new accounting for convertibles and Scott Taub said he was revising the convertible instrument in this [...] Read more > >

Some Views from CFOs on Financial Reporting Issues

Grant Thornton recently issued a white paper that reports results of a survey (318 respondents) they conducted with some CFOs from both private and public companies (authors of the paper are John Hepp and Meredith Vogel). Notwithstanding the usual caveats that come with survey data, there are some interesting (and sometimes surprising) results reported in [...] Read more > >

Performance obligations: A new era.

A search of the FASB’s entire codification of accounting standards reveals only 8 references to the term “performance obligation,” with no definition.  The term does not appear in any current concepts statements.  Given it’s prominence in the exposure draft on revenue recognition, I expect that the term will become ubiquitous as the FASB-IASB convergence process [...] Read more > >

FASB Webcast on XBRL

In addition to their upcoming webcast on nonpublic entities (see this post), the FASB is also hosting a webcast on how to use the XBRL 2011 US GAAP Financial Reporting Taxonomy. The webcast will take place on Wednesday, June 22, 2011 from 1:00–2:00 p.m. EDT. Details available here. Read more > >