Good students are worth their weight in GOLD

One of my current “traditional” masters students in accounting (traditional = comes in for a one-year degree only, having gotten a bachelors degree elsewhere) is a 35 year old fellow with a law degree from U of Iowa… worked at the bankruptcy court in St. Louis. Really bright fellow who looked like he thought he’d [...] Read more > >

When to net selling-related costs?

In teaching my Principles of Financial Accounting class last week, I stumbled across an observation I hadn’t noticed before.  I explained to my students that as a business strategy to expand sales, companies offer a range of incentives to their customers: discounts for paying early, rights to return merchandise, warranties, and credit.  However, I then [...] Read more > >

Why is Comprehensive Income more well known as the parking lot than APIC?

Deferred taxes are hard for most of us to think about .. who goes around thinking about the two sets of rules and then time differences. Two sets of differences – the human brain doesn’t do so well there. Some are trained to do this, so it probably comes easy to them, I suppose. Anyway, [...] Read more > >

New Standards: Effective Dates & transition methods

The FASB just issued a discussion paper seeking responses to nine questions about the implementation (effective dates and transition methods) of standards developing from a list of 10 currently circulating exposure drafts, including revenue recognition, financial statement presentation, financial instruments, etc. You can see the full list with proposed effective dates and transition methods by going to the FASB website [...] Read more > >

Why are they doing that?

Amazon.com.. in their 2009 income statement .. The company puts “equity-method investment activity, net of tax” below provision for taxes (in the place that you’d expect to see discontinued operations). I have not seen that kind of presentation before. Anybody have any insights? Read more > >

A plausible arena for standard setting competition?

A few weeks ago, I wondered why some academics were suggesting that the IASB and FASB compete when almost everyone else is suggesting that they work together.  A recent news release from the FASB got me thinking about this in a different way. When I was a Research Fellow at the FASB, I had several [...] Read more > >

Low hanging Fair Value and DIT's fruit…

On Friday, I asked a tax colleague whether anybody had examined the issue of how the market values DTA’s and DTL’s from fair value accounting? I got a “sort of” answer that didn’t sound too convincing. I was thinking that this is a low-hanging fruit kind of project. That is, many companies (well certain industries [...] Read more > >

Low hanging Fair Value and DIT’s fruit…

On Friday, I asked a tax colleague whether anybody had examined the issue of how the market values DTA’s and DTL’s from fair value accounting? I got a “sort of” answer that didn’t sound too convincing. I was thinking that this is a low-hanging fruit kind of project. That is, many companies (well certain industries [...] Read more > >

Normal Operating Cycle murder mystery

Although the FASB is going to converge with IASB on the notion of short-term and long-term (12 months and that’s that) .. and so this murder mystery will go away … i would like to see what anybody knows about this issue right now. The issue is what is current (or long term) depends on [...] Read more > >

Is Microsoft getting out of the software business?

I used the 2009 Microsoft financial statements in class yesterday (well just the balance sheet and contractual obligations footnote). Interesting item on the balance sheet- securities lending payable. Maybe I missed it but the footnotes were pretty bare on discussing this. My understanding of this transaction is that the company (in this case, Microsoft) will [...] Read more > >