Two New Board Members

From the FASB website: Financial Accounting Foundation Appoints Daryl E. Buck and R. Harold Schroeder to the Financial Accounting Standards Board Norwalk, CT, January 14, 2011—The Financial Accounting Foundation (FAF) today announced the appointments of Daryl E. Buck and R. Harold (Hal) Schroeder to the Financial Accounting Standards Board (FASB). Mr. Buck is currently Senior [...] Read more > >

Interesting accounting change

JP Morgan sent around a report on a change in pension accounting at Honeywell last November.  Honeywell had been following the traditional procedure of amortizing any accumulated pension gains or losses that lay outside of the corridor over the average remaining service life of employees.  The company decided to stop amortizing – any gain or [...] Read more > >

Insights on Financial Reporting from the Managerial Accounting Section Mid-Year Meeting

Many papers have been written on the “kink” in the earnings distribution, which exhibits surprisingly few small negative realizations, and surprisingly many realizations at or just above zero.  Let the financial reporting researchers argue about whether the kink is statistically robust or whether it reflects earnings management (operational or otherwise).  Managerial accountants Indjejikian, Matejka, Merchant [...] Read more > >

The IFRS Foundation Strategic Plan

We have a unique opportunity to (hopefully) have some impact on the future of standard setting. The IFRS Foundation oversees the International Accounting Standards Board. The Foundation has issued a call for comments on its strategy review. Click here to see comment letters received to date and instructions for submitting a comment letter. This provides [...] Read more > >

Add Research in Accounting Regulation To Your Reading List

Are you familiar with Research in Accounting Regulation, an Elsevier Journal?  Editor-in-Chief Gary Previts and Manuscript Editor Stephen Moehrle have put together an issue worth looking at.  The lead article by Holhbeck and Warfield analyzes the attributes of recent accounting standards, and Greg Jonas, along with Stephen Moehrle and Jennifer Reynolds-Moehrle summarize academic research published [...] Read more > >

Who knows?

A colleague of mine and I are not on the same page as to what happens in the following case — who can help us? BONDS callable by the holders … a call window is coming up in the next year. Interest rates are down so unlikely to be put back to the company by [...] Read more > >

Additional political economy research

I really enjoyed the Political Economy roundtable last week hosted by Jeremy Bertomeu and Bob Magee (audio is available if you missed the session).  I am unsure if I understand all of the moving parts in the analytic model, but many of the parts make intuitive sense.  The insight that popular opinion about the quality [...] Read more > >

A goodwill teaching moment…

For anyone who teaches M&A material in their classes, this is a great article just written by Jonathan Weil. Bank of American paid a lot for Countrywide. There was a massive amount of goodwill in that transaction. However, while everything else is in the dumps, the goodwill still lingers in an untouched state. Wow, this [...] Read more > >

SEC Issues its First Progress Report on the IFRS Work Plan

As announced on Oct 29, 2010, the SEC released its first progress report on the Work Plan which will lead up to the Commission’s decision in 2011 on whether and how to incorporate IFRS into the US financial reporting system. Much of the progress report is dedicated to explaining what the SEC staff is doing [...] Read more > >

Why did they do that II

Lisa Koonce asked a question about a particular company’s accounting the other day.  Now it is my turn.  As you probably heard, Apple early adopted some new revenue guidance that allows them to recognize the bulk of IPhone revenue at delivery rather than over the subsequent 24 months.  The early adoption required retrospective adoption, so [...] Read more > >