New Proposed ASU on Reclassifications of AOCI

On August 16, the Board issued a proposed ASU, which addresses the manner in which companies are to present the effects of reclassifications out of accumulated OCI.  This proposed update was necessitated last December when the Board issued ASU 2011-12, which deferred the effective date for the reclassification adjustments requirement in ASU 2011-05.  (For a [...] Read more > >

Ball and Brown and the Usefulness of EPS

At the AAA meeting in DC, I attended a presidential address by Ray Ball and Phil Brown regarding their seminal research paper (JAR 1968).  They described the motivation for their study as a test of existing scholarly research that painted a dim picture of reported earnings. The earlier writers noted that earnings were based on [...] Read more > >