“Scoping out” a conceptual framework

Over the course of my career, I have to admit that I’ve paid little attention to the scope paragrahs of financial accounting standards. Lately, I’ve been thinking that this might be the best place to look for a conceptual framework. In other words, how broad a (principles-based) framework would we need to alleviate the need for [...] Read more > >

SEC Issues its First Progress Report on the IFRS Work Plan

As announced on Oct 29, 2010, the SEC released its first progress report on the Work Plan which will lead up to the Commission’s decision in 2011 on whether and how to incorporate IFRS into the US financial reporting system. Much of the progress report is dedicated to explaining what the SEC staff is doing [...] Read more > >

Audio of revenue recognition round table.

After clicking on “more” at the bottom of the first page of this post, click HERE for the audio of the revenue recognition round table. You can also see the slides by clicking HERE. Read more > >

Should Standard Setters Care About Economic Consequences?

The recent issuance of CON8 provides some fascinating insights into the the FASB and IASB think about the economic consequences of their standards. In 2008, the FASB and IASB wrote the exposure draft of what would become CON8 (“Exposure Draft of Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and [...] Read more > >

Why do we fixate on the amount, timing and uncertainty of future cash flows?

The latest Statement of Financial Accounting Concepts (Number eight) reiterates the objective of financial reporting in the following terms: “Decisions by existing and potential investors … and … existing and potential lenders … depend on their assessment of the amount, timing, and uncertainty of (the prospects for) future net cash flows …” (p. 1-2, par. [...] Read more > >

Slides for today’s Round Table on Revenue Recognition

The FASB Revenue Recognition team has graciously provided us with power point slides which you may download prior to today’s round table discussion (at 4pm Eastern time).  Click here to download the slides, and click here for more information on today’s round table including how to tune in. Note: If you’re still on the screen [...] Read more > >

Links to slides and audio archive from last week’s leases roundtable

Last week Danielle Zeyher joined us for a round table discussion of the FASB’s latest exposure draft on lease accounting. If you haven’t clicked on “more” at the bottom of the first page of this post, do so now. If you’d like to hear the audio of the leases session, click here.  If you’d like a [...] Read more > >

Leases and credit ratings

Thanks to Danielle Zeyher, FASB project manager, and all who participated in a lively and informative FASRI round table on proposed new lease accounting standards. The FASB and IASB are preparing what could be a giant step that would bring more than $1 trillion of debt onto balance sheets of public U.S. companies alone (e.g., The Analyst’s Accounting Observer, [...] Read more > >

FASB Issues SFAC 8

The Financial Accounting Standards Board continued making progress on its Conceptual Framework Project by issuing a new concept statement earlier this week. The Conceptual Framework Project is a joint effort with the IASB, aimed at producing a signal framework that both Boards could use in developing (ideally converged) standards. This new concept statement, SFAC 8, [...] Read more > >

Who is complaining about POC accounting?

One of the frequent criticisms the revenue recognition project has received in the past few years is that the proposed new standard would change revenue recognition in areas that do not seem to pose any problems today. One example of that is the construction industry, where the proposed new standard has the potential to change [...] Read more > >