Office Hours: Christian Leuz on International Convergence

Office hours tomorrow (4pm ET April 7), University of Chicago Prof. Christian Leuz will be leading a discussion on international convergence.  Christian is in an excellent position to do this:  as I mentioned in this posting on research by Ramanna and Sletten, Christian is one of the authors of a literature review on international convergence–the [...] Read more > >

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 > >

Office Hours: Segment Reporting, FAS 131 and The Management Approach

Just a reminder that Wednesday, April 1, 11am ET,  Christine Botosan (Univ of Utah) will lead a discussion about her recent research on segment reporting, with Susan McMahon and Marry Harris Stanford—with particular emphasis on the role of managerial discretion and standards that require preparers to disclose information that is consistent with management’s own views.  [...] Read more > >

Leslie Seidman: In the “Cautionary Camp” on Fair Value

A few weeks ago FASB Board member Leslie Seidman joined us for office hours.  We covered a lot of ground, and Ray has already written on some of her ideas for research.  I thought I would summarize her rather cautionary views on fair value accounting for financial instruments.  Playing to the academic audience, Ms. Seidman [...] 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 > >

Office Hours: Leslie Hodder on Fair Value Accounting

Leslie Hodder (Indiana University) will be joining us for FASRI Office Hours at 4pm ET, March 24th, to talk about recent research on Fair Value Accounting. No doubt we will talk a fair bit about FASB’s recent proposals to clarify FAS 157’s discussion on ‘active markets’ and to alter reporting of impairment (see here and [...] Read more > >

New Guidance on Other-Than-Temporary Impairments

The FASB just released a Proposed FASB Staff Position that would amend the other-than-temporary (OTT) impairment guidance in two FASB Statements (SFAS 115 and SFAS 124) and in EITF 99-20.  This Proposed FSP seems to make two big changes.  Read more > >

FSP FAS 157-e Proposes 2-Step Test for Determining Whether a Market is Not Active

A new FASB Staff Position proposes a 2-step test to determine whether a market is not active. This will hardly satisfy those who think firms shouldn’t have to use fair value accounting for the assets in question in the first place.  But for those who are simply complaining that market prices are ‘fire sale’ prices, [...] 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 > >