Securitization, Complexity and Transparency

The blogosphere is ablaze with reactions to an op-ed in the Wall Street Journal about Securitization.  In light of the upcoming roundtable on securitization with Cathy Shakespeare next Tuesday, I thought I would point people toward one of the more interesting perspectives, on the legal blog The Volokh Conspiracy, and related articles on whether financial [...] Read more > >

Fair Value for ALL Financial Instruments, but Own Debt at Amortized Cost

Following up on Lisa’s post, I see that the FASB has summarized the key conclusions of this week’s Board meeting: The Board agreed to propose a model to improve financial reporting for financial instruments.   The Board reached the following decisions: Read more > >

Round Table on Securitization with Cathy Shakespeare

On Tuesday, July 28th, 4pm ET, Cathy Shakespeare will lead a discussion on securitization.  Cathy will start by giving us a gentle introduction to this complex commercial arrangement, and then use recent research to indicate directions for future work.  To get insights into one of the most central issues in securitization you might start with [...] Read more > >

Round Table Discussion with Bob Laux, Microsoft

Details on participation are here. On Wednesday, July 22nd, 11am ET, we will get a preparer’s perspective on the state and future of financial reporting standards from Bob Laux, Senior Director of Financial Accounting and Reporting at Microsoft.  Mr. Laux is responsible for Microsoft’s financial accounting, including  responding to GAAP questions and issues within Microsoft [...] Read more > >

FASB to Develop a Disclosure Framework

The FASB announced today the addition of a disclosure framework project to their agenda.  The addition of the project appears to be motivated by feedback the Board received the ITAC and CIFR committees. In today’s press release, Chairman Bob Herz said: Read more > >

Can you believe this?

Cathy Shakespeare sent me this link as we’re finishing off a paper (with Karen Nelson) on fair value. Some are jaw breakers. Good stuff. Read more > >

Persistent Myths (or Misunderstandings) in Accounting Measurement: Stumbling Blocks to Improved Standard Setting, Research, and Practice

As I mentioned during a recent session of office hours that I hosted, I believe there are a number of persistent myths in accounting that seem to get passed on from generation to generation.  I promised to share them on the blog, so here they are.  Read more > >

The FASC's Comments on the SEC Roadmap

Last week, a revised version of “A Research Based Perspective on the SEC’s Proposed Rule on Roadmap for Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards (IFRS) by U.S. Issuers,” comments from the Financial Accounting Standards Committee of the American Accounting Association, appeared on SSRN.  In this post, I offer [...] Read more > >

The FASC’s Comments on the SEC Roadmap

Last week, a revised version of “A Research Based Perspective on the SEC’s Proposed Rule on Roadmap for Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards (IFRS) by U.S. Issuers,” comments from the Financial Accounting Standards Committee of the American Accounting Association, appeared on SSRN.  In this post, I offer [...] Read more > >

More Thoughts on Contingent Rentals

The issue of accounting for contingent rentals was a big part of the recent research brainstorming session on leasing.  I think that academics may have something to offer the FASB and others related to accounting for contingent rentals.  In particular, what can economic/finance theory tell us about the desirability of capitalizing expected contingent rentals? Read more > >