Bob Herz on Repo 105

In case you haven’t already seen it elsewhere, the FASB website and Bob Herz’s testimony last Friday before the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises both contain Bob Herz’s earlier (April 19) letter to Congressman Barney Frank that discusses accounting standards and the Lehman Bankruptcy report.  Not surprisingly, I found it [...] Read more > >

Time is the Best Auditor

I was talking about a recent regulatory failure with my wife last night (yes, we talk about such things), and we agreed that the truth would surely come out eventually, as uncertainties resolved. That led me to utter the pithy remark “Time is the best auditor.” My wife asked “who said that,” and I realized [...] Read more > >

Good stuff…

IN THE MONEY: FASB Readies Proposal On Fair Value For Loans By Michael Rapoport A DOW JONES NEWSWIRES COLUMN 996 words 17 May 2010 15:27 Dow Jones News Service DJ English (c) 2010 Dow Jones & Company, Inc. NEW YORK (Dow Jones)–The battle over whether to expand the use of controversial “fair-value” accounting is about [...] Read more > >

And why aren’t you…

Signed up to attend the FASB/IASB update on Sunday at the AAA in San Francisco. For the last many years, probably 10, i have attended and it’s a HUGE benefit to me in my teaching and research. I get up to speed in a very efficient way, and i hear it straight from those who [...] Read more > >

Deferred taxes and banks – Questions

I was reading a report that said that certain bank’s tangible book values are supported by large deferred tax assets. It went on to say that banks avoided DTA writedowns at 2009 year-end based on incorporating several years of future profitability in their assessment. First question: how can this be the case that they can [...] Read more > >

The Quest for Simple Accounting Standards

During the FASRI Roundtable this week, Tom Selling sparked a discussion about the extent to which accounting standards are unnecessarily complex.  In response I posed the question whether it was possible to have simple accounting standards for underlying transactions that are complex.  As I continue to think about it, I think that this is a [...] Read more > >

Round Table Discussion – Perspectives on Standard Setting

On Tuesday, May 4th, 4 pm ET, we will be joined by Tom Selling of The Accounting Onion. Tom will be discussing his opinions of standard setting in general, including fundamental questions regarding recognition, measurement and disclosure. In the process, he will also be providing his thoughts on selected portions of the current FASB/IASB agenda. [...] Read more > >

SEC Chief Accountant Questions Convergence by June 2011

A recent Journal of Accountancy article states that the SEC Chief Accountant Jim Kroeker would support the FASB’s cutting the number of convergence projects due for completion in 2011. Here’s one excerpt from that article: “June 30, 2011, is an arbitrary deadline and it’s not one that’s been put in place by the SEC or [...] Read more > >

Young Scientists in Financial Reporting and Voluntary Disclosure (and old ones too)

John Cacioppo is one of my favorite authors. He’s here today at the U of Texas, speaking to the business school. I was reading some of his stuff and ran across this and found it to be quite insightful. Although he’s a psychologist, his thoughts speak to any discipline. I guess i am thinking it [...] Read more > >

Credit Rating Manipulation Research?

   Most bloggers are familiar with lots of examples of accruals management research.  We are also seeing studies on other sorts of financial reporting manipulations, including real earnings management or classification shifting.    The NY Times had an article which discusses the credit rating agencies and their role in the recent financial crisis.  In a [...] Read more > >