AAA FASC Weighs in on Revenue Recognition

The AAA Financial Accounting Standards Committee (FASC) recently submitted a comment letter in response to the FASB/IASB’s discussion paper on revenue recognition. This letter is unusual because it is one of few (if any others) that draw on existing academic research to support its arguments. In that regard, the FASC has provided a useful service [...] Read more > >

Bob Laux of Microsoft on Revenue Recognition, Comment letters, Fair Value…and General Motors

We had an excellent discussion today with Bob Laux of Microsoft. Whether you are looking for research topics or good stories for your students–financial or managerial–you will find this a very interesting discussion. You can now watch the archive live by going here, waiting through a 15 second commercial, and then clicking the “on demand” [...] 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 > >

Thoughts on revenue recognition

In reading the FASB’s Discussion Paper on Revenue Recognition with Contracts with Customers, what immediately stands out is the intended breadth of the proposed model.  The Discussion Paper states that the model would apply to “all contracts with customers”, with contract being very broadly defined, although still consistent with IASB and commonly used US legal [...] Read more > >

Revenue Recognition Constraints and Earnings Informativeness

Anup Srivastava (Northwestern) presented a research paper at today’s FASRI Office Hours. In this post, I briefly recap the takeaways from the paper and some of the questions that were asked by participants in today’s office hours. Read more > >

Office Hours: Revenue Recognition and Discretion

Anup Srivastava (Northwestern) will join us to lead a discussion on revenue recognition on Wednesday, April 29th at 11am ET. Anup has a working paper that looks at firms who can exercise discretion over intertemporal allocations of revenue recognition, and in examining reactions to SOP 97-2, finds that firms use discretion to convey information, rather [...] 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 > >