Financial Accounting Standards Research Initiative

Oh how time flies. Just over a year ago I took the GMAT. While I spent a good deal of time preparing for the GMAT, I think I spent at least as much time trying to figure out where I wanted my GMAT scores to be sent. That was one of the most difficult parts of [...] Read more > >

Bob Lipe brought up the Kothari, Ramanna and Skinner paper presented at last year’s JAE Conference.  I’m pining today because I am unable to attend this year’s conference (typically one of my favorites), so I will console myself with commenting on their revision of the KRS paper.  I am hoping the authors will reconsider [...] Read more > >

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 > >

I know all my recent posts seem to be arising from my PhD seminar.  But hey, putting together materials for an introductory seminar makes one think about some basic research issues. One paper I assign is the Watts and Zimmerman excuses paper.  In case you are unfamiliar with the paper, I view it as presenting a [...] Read more > >

I am coming to the party late on this one.  Back in October 2009, Rob initiated several posts related to the Kothari, Ramanna and Skinner paper that he saw presented at last year’s JAE conference.  I read the paper with a more critical eye recently in preparing for an introductory PhD seminar.  While it did [...] Read more > >

Isn’t disclosure always a good thing?  Isn’t it always better to have audited financial statements than not (ignoring the cost of the audit itself)? Wouldn’t it be particularly important to audit a large bank?  How about one that holds our entire financial system in its hands…such as the Federal Reserve Bank? I was very surprised to [...] Read more > >

This is worth a read: On accountants: The accountants utterly failed us. And by the way, there’s practically no sign of any intelligent reversal of the failure of that profession. I have yet to meet many accountants who are the least bit ashamed for their contribution to our recent troubles. But it [...] Read more > >

At 4pm Eastern time on Wednesday, 10/6/2010, we will have our second roundtable for this academic year. Please join us! See the new FASRI Roundtables WebPage describing how to use VenueGen, our new platform from which you can join the Roundtable discussion. Danielle Zeyher, FASB Project Manager, will join us to discuss the IASB-FASB Leases Project. This project has [...] Read more > >

You can listen to the conversation with FASB’s Nick Capiello here. Read more > >

One important topic of yesterday’s very interesting roundtable with Nick Cappiello is the staff draft proposal to include an “operating-finance” section in the balance sheet. The staff apparently views some transactions to have characteristics of both operations and financing of those operations. Ideally, I guess most users would like a clear distinction between operating items and items [...] Read more > >

Our next FASRI roundtable is with Danielle Zeyher, manager of the FASB-IASB leases project.  Please mark your calendars for 4pm Eastern time on Wednesday October 6th.  More information will follow as we approach the time of the session. Read more > >

In case you missed the first roundtable of the semester, we will have a recording available soon.  Meanwhile, you can access the slides for the session HERE.  And, Nick Cappiello, the presenter, has graciously provied his contact information at ntcappiello@fasb.org in case anyone has questions about the slides, the topic, or the presentation and discussion. Thank [...] Read more > >

Slides for today’s session: Click HERE Go directly to the meeting HERE At 4pm Eastern time today, we will have our first roundtable for this academic year. Please join us! See the new FASRI Roundtables WebPage describing how to use VenueGen, our new platform from which you can join the Roundtable discussion. Nick Cappiello, an FASB Project Manager, will [...] Read more > >

The Financial Accounting Foundation took the first step today toward filling the three vacant seats on the Financial Accounting Standards Board that opened up with the retiring of Bob Herz and the FAF’s decision to move from 5 to 7 members. In this press release, the FAF announced that the FASB’s technical director, Russell Golden, [...] Read more > >

Jessen Hobson recently posted a paper on SSRN titled “Do the Benefits of Reducing Accounting Complexity Persist in Markets Prone to Bubble?” I thought the title sounded interesting. It seems like a lot of recent research has focused on reducing accounting complexity (e.g. simplify presentation format, make things more transparent, etc). The premise is that reducing [...] Read more > >

Okay, so i was talking to a colleague a few months ago — a prominent academic tax person — and we were talking pensions and deferred taxes. We got it sorted out (he helped me greatly) but then he said something about my making up a fake income tax expense. HUH? Fake, [...] Read more > >

At 4pm Eastern time on Tuesday, 9/21/2010, we will have our first roundtable for this academic year. Please join us! See the new FASRI Roundtables WebPage describing how to use VenuGen, our new platform from which you can join the Roundtable discussion. Nick Cappiello, an FASB Project Manager, will join us to discuss the IASB-FASB Financial Statement [...] Read more > >

Several years ago, I stumbled upon a company that does the direct SCF. Excellent example particularly b/c years ago, the company was in desperate shape, close to bankruptcy. They turned themselves around, and you can “see” the strategy shift in their SCF. One, you see the huge cash infusion by lenders… then [...] Read more > >

A student asked me a question the other day.. never thought about it .. as we were talking about Cisco’s flush statement of cash flows. Their year-end has been: July 25, 2009 July 26, 2008 July 28, 2007 These are Saturday’s. Why are they doing this? Anybody know? Read more > >

I got this fasb email today (see below). Just listened to it, it’s perfect perfect stuff for your classes – intermediate probably, when you cover the statement of cash flows. Very understandable, very short (20 minutes). Wow, really nice. Heads up for you. Lisa The Financial Accounting Standards Board (FASB) and the [...] Read more > >