Roundtable discussion reminded me of a post by Cathy Shakespeare on good vs bad book. Just this week, some groups in my Theory class were assigned to analyze the FASB and IASB “Supplemental Document” that she cites. One group is to explain the proposal. The other group is to highlight the comment letters. I will [...] Read more > >
Journal of Accounting and Economics. The paper is entitled, “Accounting standards and debt covenants: Has the ‘Balance Sheet Approach’ led to a decline in the use of balance sheet covenants?” My first reaction was to question what the author meant by a “balance sheet approach” because I’ve never heard a good explanation of what the [...] Read more > >
The FASB is currently engaged in deliberations on accounting for impairments of financial instruments. The title of Hal’s Roundtable discussion will be “Accounting for Impairment: The Next Generation.” His discussion promises to provide unique insights into the economic implications of the various accounting alternatives. Academics should be aware of the issues surrounding the financial instruments [...] Read more > >
First China Pharmaceutical Group, Inc. The company acquired XYT, and in doing so, ended up with a note receivable from the CEO and Chairman of XYT. The company recorded the note as an asset. Upon further review, the SEC “requested the Company remove the note as an asset and restate it against retained earnings.” After [...] Read more > >
How many of you work for a university that only values “A-hits”? To the non-academics, this mean that a publication in one of 3 or so top journals counts as meeting the research expectations placed on the faculty member. Publication(s) in other journals do not count. Recently, my institution elevated the value of A-hits, but [...] Read more > >
I’m not trained in behavioral economics, but I recognize the potential that this research methodology can have on standard setting. Recently, the Miller paper was informally discussed among some FASB staff as to whether it might have implications for the FASB’s disclosure framework project. That discussion is the impetus for this post, which requests information [...] Read more > >