Comment Letters to FASB on Proposal to Defer Effective Date of OCI Reclassification Presentation

ASU 2011-05, which was issued in June, required that firms report comprehensive income within a performance statement and prominently display on the face of the income statement the affected line items from recycling.  It was this latter requirement that caused heartburn for some preparers, and as Bob Lipe blogged here, the FASB exposed a proposal [...] Read more > >

More on International Convergence

Bob Lipe blogged last week on the SEC’s release of two documents related to their exploration of whether/how to integrate IFRS into US GAAP.  Since the release of those documents, the SEC, IASB, and FASB have all made public statements that provide insights as to where regulators and standard-setters sit on this issue.  The least [...] Read more > >

Pragmatics, Implicature and The Efficiency of Elevated Disclosure

Pragmatics, Implicature and The Efficiency of Elevated Disclosure, an article now posted on SSRN that sprang from my thoughts about the FASB’s Disclosure Framework Project, which I discussed in my presentation on the Theories of Disclosure panel at the 2011 AAA Meetings in Denver. Here is the abstract: This paper uses a Pragmatic theory of [...] Read more > >

If you file it (on EDGAR), will they come?

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The Magical Number Seven

I’m not trained in behavioral economics, but I recognize the potential that this research methodology can have on standard setting.  Recently, the Miller paper was informally discussed among some FASB staff as to whether it might have implications for the FASB’s disclosure framework project.  That discussion is the impetus for this post, which requests information [...] Read more > >

Does Revenue Cause a Firm’s Wealth To Rise?

I have been spending most of 2011 immersed in managerial accounting as I completely rework my course on that topic from the ground up.  This has led me to rethink the Conceptual Framework as well.  One of the most striking differences between the managerial accountant’s and financial accountant’s approaches seems to be that the former [...] Read more > >

AAA Observations on Conceptual Framework

The AAA meeting in Denver had a number of interesting panel sessions.  One that I found enlightening concerned financial reporting and the financial crisis.  The panelists were Greg Waymire, Mary Barth, and Shyam Sunder.  I was not sure what to expect.  The punchline was that none of the panelists felt financial reporting was a prime [...] Read more > >

International Convergence

The deadline for the SEC to make a decision on whether or not to accept IFRS for domestic issuers is drawing near.  Obviously, this is an important decision that will have tremendous implications for accounting educators and the FASB.  In a recent speech in China, Hans Hoogervorst, the new Chairman of the IASB, commented that [...] Read more > >

Have accounting standards caused a decline in “matching” over time?

Many accounting academics think that matching expenses to their associated revenues produces an earnings pattern that is useful to decision makers. As a result, these academics think that any decline in matching will produce less useful earnings information for financial statement users. Along these lines, a recent study by Dichev and Tang (2008) in The [...] Read more > >

Proposed Leasing Standard to Be Re-exposed

This week, the FASB and IASB announced plans to re-expose their proposed standard on leasing. This project was, until late last year, slated to be finished in July 2011. However, given the majors changes that have been raised during redeliberations, the boards have concluded that they are likely to end up with a document that [...] Read more > >