Nice explanation …

Last week, FASB Chairman Robert Herz submitted a letter to Congressman Barney Frank, Chairman of the House Financial Services Committee, and Congressman Spencer Bachus, Ranking Minority Member, regarding accounting rules that were being used (or misused) by Lehman Brothers prior to its bankruptcy in 2008. The letter, which explains the relevant accounting guidance, was entered [...] Read more > >

Account for This!

A policy proposal floating around these days is to require banks to issue contingent convertible debt: MY [Mankiw's] favorite proposal is to require banks, and perhaps a broad class of financial institutions, to sell contingent debt that can be converted to equity when a regulator deems that these institutions have insufficient capital. This debt would [...] Read more > >

Why isn’t there …

The other day, a PhD student here at Texas asked me for an advanced accounting book that had deferred tax coverage in it. She’s a tax person and was wanting to re-fuel her knowledge of this area before she started her summer paper. I laughed and said good luck on that one! I just started [...] Read more > >

Impossible Accounting–Health Care Edition

It sure seems hard to account for revenue, leasing, derivative…you name it.  Well, let’s add insurance loss ratios to the list.  The only difference is that this is a Congressional matter, not (just?) financial reporting:  take a look here. Read more > >

CFTC Approves Exchange for Trading Box Office Receipt Derivatives (but reserves judgment on the contracts themselves)

The US Commodities Furtures Trading Commission has approved an interesting exchange: CHICAGO (April 16, 2010) –– Media Derivatives (“MDEX”) is pleased to announce that it has received approval from the U.S. Commodity Futures Trading Commission (“CFTC”) as a designated contract market. Media Derivatives will operate under the name The Trend Exchange® (“TrendEx”). TrendEx is the [...] Read more > >

Sauce for the goose (business), sauce for the gander (government)

Over the course of the past few months, I’ve reviewed a number of books and papers that were nominated for the 2010 AAA Wildman Medal Award, which seeks to recognize papers that use rigorous research methods to deal with current issues in accounting practice. One of the nominated papers was entitled, “Consequences of GAAP disclosure [...] Read more > >

FASB Selects Next Research Fellow

The Financial Accounting Standards Board (FASB) is pleased to announce that Phil Shane, Professor of Accounting at the University of Colorado at Boulder and the University of Auckland, has accepted the FASB 2010-2011 Research Fellowship, which will begin in August. Phil will be replacing Jeffrey Hales, who will complete his term and return to his [...] Read more > >

Sauce for the Goose (business), the Same for the Gander (government)

Over the course of the past few months, I’ve reviewed a number of books and papers that were nominated for the 2010 AAA Wildman Medal Award, which seeks to recognize papers that use rigorous research methods to deal with current issues in accounting practice. One of the nominated papers was entitled, “Consequences of GAAP disclosure [...] Read more > >

Have you seen this? New Board?

Blue Ribbon Panel to Weigh Launching Standard Setter for U.S. Private Companies NEW YORK—Members of a blue ribbon panel formed to address private company financial reporting in the Unites States said April 12 the group would decide whether to set up a new and separate standard-setting body that would address and write accounting standards for [...] Read more > >

SFAS 166/167

I just got my Credit Suisse report entitled OFF AGAIN, ON AGAIN? re 166 and 167. I don’t know how many of you tried to teach this last year or now, but this is one difficult to get one’s arms around standard. It is not so concept-based. The underlying transactions are a little complicated, but [...] Read more > >