Has the "balance sheet approach" led to a decline in the use of balance sheet covenants?

Journal of Accounting and Economics. The paper is entitled, “Accounting standards and debt covenants: Has the ‘Balance Sheet Approach’ led to a decline in the use of balance sheet covenants?” My first reaction was to question what the author meant by a “balance sheet approach” because I’ve never heard a good explanation of what the [...] Read more > >

Have accounting standards caused a decline in “matching” over time?

Many accounting academics think that matching expenses to their associated revenues produces an earnings pattern that is useful to decision makers. As a result, these academics think that any decline in matching will produce less useful earnings information for financial statement users. Along these lines, a recent study by Dichev and Tang (2008) in The [...] Read more > >

When did Standard Become a Noun?

Talk to an academic my age or older, and right along with “get off my lawn” you’ll hear comments like “kids these days never read anything published more than five years ago.”  This is often true in research (outside of doctoral seminars), but is even more true about standard setting. After all, how could something [...] Read more > >