Did SFAS 131 (Segment Disclosures) work?

During today’s Research Office Hours, Christine Botosan, Susan McMahon, and Mary Stanford shared insights from their recent working paper “Representationally Faithful Disclosures, Organizational Design, and Managers’ Segment Reporting Decisions.”  In their paper, they investigate whether SFAS 131 had its intended effect — providing users with better information about segment disclosures by encouraging more disaggregated segment [...] Read more > >

Record Crowd to Discuss Fair Value at Office Hours

Leslie Hodder led a discussion of fair value accounting at Office Hours.  We had over 30 avatars present, some of them acting as the eyes and ears of a roomful of faculty and doctoral students.  A number of attendees wanted a copy of  Leslie’s  fair-value slides. Leslie started off the discussion with a review of [...] Read more > >

Dim Outlook for International Convergence?

The FASB wrote a comment letter to the SEC on the roadmap to  international convergence, accompanied by a tour-de-force literature review by Luzi Hail, Christian Leuz and Peter Wysocki. The upshot of the research is that the US is unlikely to to see strong benefits to a formal convergence process, in part because our accounting [...] Read more > >

Accrual Anomaly Research for Standard Setters (not Money Managers)

At today’s office hours, Bob Lipe presented this working paper with Lail and Yi.  The upshot of the paper is that we need to be very careful when we think about the standard-setting implications of the accrual anomaly.  It is tempting to say that accrual standards must be a problem because (as the Richardson, Sloan, [...] Read more > >

Research Ideas – Fair Value for Liabilities and Revenue Recognition

During FASB Research Office Hours on Tuesday, March 10, Leslie Seidman, FASB Board member, suggested the following questions as being of interest to the FASB regarding fair value measurement for liabilities. I believe that these questions are interesting and potentially addressable from multiple research perspectives. Moreover, I believe that work on these questions has the [...] Read more > >