PCOAB Makes Itself Heard

Auditing, not financial reporting, but still worth a close look: PCAOB Announces Ambitious Agenda; May Be Time to ‘Dial Up’ on Fraud, Silvers Says Read more > >

Staying clean

Did you all see the article written by Jonathan Weil.  It’s entitled “Five people who stayed clean in Banking’s Bilge.”  He mentions Tom Linsmeier and Marc Siegel of the FASB.  It’s a good read .. check it out.. http://www.bloomberg.com/apps/news?pid=20601039&sid=asF03z299rGY Read more > >

Very Brief IFRS-Convergence Survey

The Accounting Onion (longtime member of our blogroll) has a very short survey on people’s views about international convergence of accounting standards to IFRS.  At only 12 questions long, it only takes a few minutes of your time.  I am sure your input would be valued. Read more > >

New Revenue Recognition Rules and Tech Firms

A student of mine brought to my attention an article in the Wall Street Journal September 24, 2009, “Investors Should Focus on Apple’s Core.”  In that article, Martin Peers points out that existing guidance for firms who have products that combine hardware and software, like Apple’s iPhone, required firms to obtain specific evidence about the [...] Read more > >

Much of What We Publish Is Wrong…Even More, If It’s About Fair Value

That would be the implication of this research study, which makes a fairly simple statistical point.  We already know that papers are more likely to be published if they include a positive result (they reject the null).  Less politically correct to admit is that when the data gets messy, researchers tend to make a lot [...] Read more > >

Financial Innovation and Blame

A very interesting set of posts on ‘Economics of Contempt’ on financial innovation and credit rating failures.  A few key points: Disclosure was good enough to make AIG’s exposure to Credit Default Swaps well-known.  The real problem, according to this anonymous structured finance lawyer, was that the ratings on lower-tier tranches became increasingly generous over [...] Read more > >

Get ready for earlier revenue recognition (and more estimation)

Are you ready for earlier revenue recognition (and more estimation)?  The FASB approved an EITF consensus (issue 08-1) this week in which the EITF dropped one of the key requirements that often precluded revenue recognition for delivered items in a multiple-element arrangement (think Apple and iPhones). In current accounting standards (EITF 00-21 or FASB Accounting [...] Read more > >

Virtual Worlds Conference on LIVE Page

I am in the San Jose airport leaving the Engage! Expo, a 2-day conference on Virtual Worlds.  It turns out that the technology we are using for FASRI is pretty popular, and as a favor to some friends, we are letting them use our LIVE page to stream a conference at Sun Microsystems.  Just click [...] Read more > >

Yes, Virginia: Recognized Information is Viewed as More Reliable

I presented FASRI’s report on Financial Statement Presentation to the IASB (last Thursday) and to the FASB (yesterday).  The report is based on an experiment conducted with Frank Hodge, Pat Hopkins and Kristi Rennekamp.  Several Board members seemed pleasantly surprised by the ability of the research to address the issues being deliberated, and are clearly [...] Read more > >

SEC Concerned about Race to Bottom

The question of whether competition among standard setters leads to improved, high-quality reporting is an oft-debated topic and one that has come up on the FASRI research blog before (you can read the extensive commentary that topic induced here).  While academics might disagree, the SEC has already clearly voiced their concern about competition inducing a [...] Read more > >