Disclosure project continued…

The FASB’s current Disclosure Framework Project was initiated in response to recommendations from various investor groups and the SEC Advisory Committee. One of the groups to reach out to the FASB was the Investors Technical Advisory Committee. In reading through their 2007 letter, they state as part of their rationale: “In our view, our proposal [...] Read more > >

Pensions, OCI, and intangibles

This post relates to some prior threads.  Its main basis is the IASB’s amended pension guidance (Phil’s post).  It is also about what goes to OCI (my post).  And finally it considers another type of intangible that may or may not be an asset (Jeff W’s post). My curiosity is how the new IASB guidance [...] Read more > >

SEC Roundtable on IFRS

On Thurs, July 7, the SEC will hold a roundtable on International Financial Reporting Standards. The agenda (available here) looks to cover aspects of the Work Plan with particular emphasis on investor, small company, and government preparedness. The event will be webcast and is scheduled to run from 10 am to about 4 pm in [...] Read more > >

Great teaching case — is it a derivative or not?

A Tuesday June 28th Financial Times article entitled “Accelerated Buy-Backs Make a Comeback” indicated that companies were using excess cash to buy back their own stock. Rather than the traditional buy back process (where a broker buys back the company’s stock .. on behalf of the company), the company is accelerating the buy back. What [...] Read more > >

Pervasive Evidence

Current revenue recognition criteria are easy to talk about in class but coming up with concrete examples, using companies that students have heard of has always been challenge for me. Well not any more. A recent Accounting Onion post highlighted a great example of an issue with the criteria requiring pervasive evidence of arrangement before [...] Read more > >

Favorite OCI Item Anyone?

Other Comprehensive Income has appeared in a couple of different posts recently.  It plays a role in pension accounting (see “is it time to fix accounting for pensions”).  The blog also reported that the FASB recently restricted the potential methods for disclosing OCI. The latter post raised some general questions about distinctions between net income [...] Read more > >

A Little Discretion Here, A Little Discretion There

Lease accounting has received a lot of attention recently, given the fairly substantial changes being proposed by the FASB and the IASB in their joint project on lease accounting. One area of lease accounting that hasn’t raised as much discussion is how to account for short-term leases (i.e., leases with terms of less than one [...] Read more > >

Is it time to “fix” accounting for pensions?

On June 16, 2011, the IASB released its amendments to IAS 19 (Employee Benefits).  David Zion, accounting research analyst for Credit Suisse, reviews the implications of the amendments and concludes that “now it’s FASB’s turn” to “fix” pension accounting. In fact, he recommends that the FASB simply expose the new IASB rules, as is, to FASB [...] Read more > >

More on Disclosure

I told a brand new PhD student here at The University of Texas, Greg Capps, about my regular blogging on the FASB disclosure project. He had an interesting story to tell me. He said… “In my auditing days, perhaps the worst thing we did to a client was hand them the 250-page GAAP Disclosure Checklist [...] Read more > >

Accounting quality and backdoor listing

I got an email alerting me to an interesting news item from Bloomberg.  The story discusses how some Chinese firms become publicly traded in the U.S. but would not qualify to be listed in Hong Kong.  The story mentions that 98 Chinese companies used “reverse-merger” to get listed in the U.S.  “The MSCI China Index [...] Read more > >