Survey on Financial Instruments Accounting

Accounting for financial instruments has been a tough issue for a long time, and the recent financial crisis has heightened concerns.  My guess is that a number of academics are working on research projects related to accounting for financial instruments.  In many cases, I bet the authors would like a convenient document they could cite [...] Read more > >

FASB Issues SFAC 8

The Financial Accounting Standards Board continued making progress on its Conceptual Framework Project by issuing a new concept statement earlier this week. The Conceptual Framework Project is a joint effort with the IASB, aimed at producing a signal framework that both Boards could use in developing (ideally converged) standards. This new concept statement, SFAC 8, [...] Read more > >

Who is complaining about POC accounting?

One of the frequent criticisms the revenue recognition project has received in the past few years is that the proposed new standard would change revenue recognition in areas that do not seem to pose any problems today. One example of that is the construction industry, where the proposed new standard has the potential to change [...] Read more > >

Normative again

I am coming to the party late on this one.  Back in October 2009, Rob initiated several posts related to the Kothari, Ramanna and Skinner paper that he saw presented at last year’s JAE conference.  I read the paper with a more critical eye recently in preparing for an introductory PhD seminar.  While it did [...] Read more > >

Can a Good Audit Be a Systemic Threat?

Isn’t disclosure always a good thing?  Isn’t it always better to have audited financial statements than not (ignoring the cost of the audit itself)? Wouldn’t it be particularly important to audit a large bank?  How about one that holds our entire financial system in its hands…such as the Federal Reserve Bank? I was very surprised [...] Read more > >

An interesting take on accountants

This is worth a read: On accountants: The accountants utterly failed us. And by the way, there’s practically no sign of any intelligent reversal of the failure of that profession. I have yet to meet many accountants who are the least bit ashamed for their contribution to our recent troubles. But it was immense. Imagine [...] Read more > >

FAF Appoints Russ Golden to the FASB

The Financial Accounting Foundation took the first step today toward filling the three vacant seats on the Financial Accounting Standards Board that opened up with the retiring of Bob Herz and the FAF’s decision to move from 5 to 7 members. In this press release, the FAF announced that the FASB’s technical director, Russell Golden, [...] Read more > >

My opinion is that this is crazy

Okay, so i was talking to a colleague a few months ago — a prominent academic tax person — and we were talking pensions and deferred taxes. We got it sorted out (he helped me greatly) but then he said something about my making up a fake income tax expense. HUH? Fake, I ask? No [...] Read more > >

Fabulous teaching example

Several years ago, I stumbled upon a company that does the direct SCF. Excellent example particularly b/c years ago, the company was in desperate shape, close to bankruptcy. They turned themselves around, and you can “see” the strategy shift in their SCF. One, you see the huge cash infusion by lenders… then two, you see [...] Read more > >

Why is that year-end moving around.

A student asked me a question the other day.. never thought about it .. as we were talking about Cisco’s flush statement of cash flows. Their year-end has been: July 25, 2009 July 26, 2008 July 28, 2007 These are Saturday’s. Why are they doing this? Anybody know? Read more > >