FASB Proposes Update to Fair Value Disclosure Requirements

FASB is circulating an Accounting Standards Update that would clarify required disclosures about fair values.  Particularly noteworthy is that the Update proposes a detailed “roll forward” of fair value measurements using significant unobservable inputs (“Level 3″), which would provide a clear breakdown of how the total level 3 measurements changed as a result of: transfers [...] Read more > >

FASB-Friendly Research Report on Financial Statement Presentation

To prepare for tomorrow’s round table discussion (Wed Sept 2, 11am ET) on FASRI’s Financial Statement Presentation research, take a look at this report on an experiment I conducted with Frank Hodge, Pat Hopkins and Kristi Rennekamp.  A few points I’d like to make off the bat: Read more > >

Conducting Research with the FASB: Round Table and Call for Participation

If you read our ABOUT page at the top menu of the FASRI website, you will see that FASRI doesn’t just lead discussions about accounting research (as fascinating as that may be).  We also actively support researchers who are willing to work with FASB staff to conduct original research studies.  At next week’s Round Table [...] Read more > >

Fair Value Accounting From the Mouths of Babes Students: Zoe-Vonna Palmrose’s 2005 AAA Address

A few weeks ago, in a post entitled “Why Do Standard Setters Make Such Awful Decisions?,”  I cited Zoe-Vonna Palmrose as one of several academics who think that the FASB’s embrace of fair-value accounting is so obviously mistaken that even children could see it.  Bill Kinney pointed out that my recollection of Zoe-Vonna’s 2005 presentation [...] Read more > >

Round Table Discussion on Proposed Changes to Revenue Recognition

On Tuesday, August 25th, 4 pm ET, we will be joined by Ted Christensen and Jeff Wilks (both of Brigham Young University) as we discuss the FASB and IASB’s proposed changes to revenue recognition. As you may know, Jeff played a significant role in the FASB/IASB joint project on revenue recognition during his time as [...] Read more > >

What did people say about the proposed revenue recognition model?

The comment letter deadline for the IASB/FASB discussion paper on revenue recognition was June 19, 2009. The staff recently presented a high-level summary of the 200+ comment letters received by the boards. Given my recent posts (July 30 and Aug. 11) on the AAA FASC’s comment letter, I thought it might be useful to consider [...] Read more > >

If it isn't useful to managers, does that mean it isn't useful to users?

I have been diving in to the FASB’s (and IASB’s) newly-energized discussions on cash flow reporting.  One of the most contentious aspects of the issue is that users want direct cash flow data that reports the inflows and outflows, broken down by the function and nature of the spending.  For example, is that cash outflow [...] Read more > >

If it isn’t useful to managers, does that mean it isn’t useful to users?

I have been diving in to the FASB’s (and IASB’s) newly-energized discussions on cash flow reporting.  One of the most contentious aspects of the issue is that users want direct cash flow data that reports the inflows and outflows, broken down by the function and nature of the spending.  For example, is that cash outflow [...] Read more > >

What Makes for a Good Disclosure? Not a Bunch of Citations and Jargon

As reported in the FEI Financial Reporting Blog, a CFO.com article by David McCann captured some recent remarks made by Wayne Carnall, the SEC Division of Corp. Fin. Chief Accountant.  In response to questions about whether firms would have to amend existing filings to make specific references from the legacy body of GAAP literature consistent [...] Read more > >

How True or Fair is “True and Fair”?

One of the topics that came up in last week’s Round Table on Alternative Conceptual Frameworks was a discussion of the true and fair override. It came up when we were talking about one difference between US GAAP and IFRS being that Read more > >