Identifying the Most Basic Sources of Disagreement Over Standard Setting

Reading Kothari, Ramanna and Skinner’s answer to the question “What Should GAAP Look Like?” makes me want to get a better handle on the different perspectives academics are bringing to their criticism of accounting standards and the standard-setting process.  This will probably be the first of several posts, and I want to start with the [...] Read more > >

Revenue Recognition and “Libby Boxes”: Research Brainstorming Roundtable

Revenue recognition is one of FASRI’s key target areas for research over the coming year.   We are going to take a big step forward on Tuesday, October 6th, 4pm by laying out some possible approaches to research studies on RevRec.  We will be structuring our discussion around the key independent variables that researchers might have [...] Read more > >

Get ready for earlier revenue recognition (and more estimation)

Are you ready for earlier revenue recognition (and more estimation)?  The FASB approved an EITF consensus (issue 08-1) this week in which the EITF dropped one of the key requirements that often precluded revenue recognition for delivered items in a multiple-element arrangement (think Apple and iPhones). In current accounting standards (EITF 00-21 or FASB Accounting [...] Read more > >

Financial Statement Presentation Decisions

FASB made some decisions on Financial Statement Presentation on Wednesday.  Here is part that is related to FASRI’s research study, presented two days earlier: The Board decided to retain an approach to classification within the business section that is based on how a reporting entity organizes its activities and how it uses its assets and [...] Read more > >

SEC Concerned about Race to Bottom

The question of whether competition among standard setters leads to improved, high-quality reporting is an oft-debated topic and one that has come up on the FASRI research blog before (you can read the extensive commentary that topic induced here).  While academics might disagree, the SEC has already clearly voiced their concern about competition inducing a [...] Read more > >

More on Litigation-Related Disclosures and Working with the FASB on Research

Yesterday (September 10, 2009), Rob Bloomfield posted regarding a legal perspective on FASB Accounting Standards Codification Topic 450 (FAS 5 – Accounting for Contingencies) and proposed changes in the disclosure rules for litigation-related contingencies.  This post relates to both the FAS 5 issue as well as an earlier discussion regarding conducting research with the FASB. While [...] Read more > >

Round Table Discussion on Changes in the Revenue-Expense Relation

On Wednesday, September 16th, 11 am ET, Dain Donelson, Ross Jennings, and John McInnis, all of the University of Texas at Austin, will join us to discuss their recent paper entitled “Changes over Time in the Revenue-Expense Relation: Accounting or Economics?”  Their paper follows the work of Dichev and Tang (2008), who document Read more > >

Volokh Conspiracy Lawyers Lend FASRI a Hand

Last week I suggested you take a look at how lawyers view accounting, courtesy of the popular and thoughtful legal blog, The Volokh Conspiracy.  This week, I am glad to report that conspirator (and American University law professor) Kenneth Anderson has given me the opportunity to write a guest post getting lawyers insights into a [...] Read more > >

Fair Value Quiz

What industries have the largest percentage of their assets measured under fair value standards?  Whisper your answer to the person sitting next to you before clicking to see the answer, courtesy of this paper by Gartenberg and Serafeim of HBS. Read more > >

In Praise of Mark-To-Management

Georgetown finance professor James Angel has written an interesting piece praising the benefits of what he calls mark-to-management (or what we fair value wonks would call Level 3 inputs), and argues the benefits of including all three dimensions of valuation (cost, market price and management models) in disclosures.  Of course we can’t recognize all of [...] Read more > >