Deferred taxes and banks – Questions

I was reading a report that said that certain bank’s tangible book values are supported by large deferred tax assets. It went on to say that banks avoided DTA writedowns at 2009 year-end based on incorporating several years of future profitability in their assessment. First question: how can this be the case that they can [...] Read more > >

Research Rankings by Topic and Methodology

Just this morning, a team of researchers went live with a website that ranks accounting programs’ research by topic and methodology. If you’ve ever wondered which accounting programs are the strongest in analytical methodology, based on published research in the past 6, 12, or 20 years by faculty currently in the program, this site can [...] Read more > >

The Quest for Simple Accounting Standards

During the FASRI Roundtable this week, Tom Selling sparked a discussion about the extent to which accounting standards are unnecessarily complex.  In response I posed the question whether it was possible to have simple accounting standards for underlying transactions that are complex.  As I continue to think about it, I think that this is a [...] Read more > >

Round Table Discussion – Perspectives on Standard Setting

On Tuesday, May 4th, 4 pm ET, we will be joined by Tom Selling of The Accounting Onion. Tom will be discussing his opinions of standard setting in general, including fundamental questions regarding recognition, measurement and disclosure. In the process, he will also be providing his thoughts on selected portions of the current FASB/IASB agenda. [...] Read more > >

SEC Chief Accountant Questions Convergence by June 2011

A recent Journal of Accountancy article states that the SEC Chief Accountant Jim Kroeker would support the FASB’s cutting the number of convergence projects due for completion in 2011. Here’s one excerpt from that article: “June 30, 2011, is an arbitrary deadline and it’s not one that’s been put in place by the SEC or [...] Read more > >

Young Scientists in Financial Reporting and Voluntary Disclosure (and old ones too)

John Cacioppo is one of my favorite authors. He’s here today at the U of Texas, speaking to the business school. I was reading some of his stuff and ran across this and found it to be quite insightful. Although he’s a psychologist, his thoughts speak to any discipline. I guess i am thinking it [...] Read more > >

Credit Rating Manipulation Research?

   Most bloggers are familiar with lots of examples of accruals management research.  We are also seeing studies on other sorts of financial reporting manipulations, including real earnings management or classification shifting.    The NY Times had an article which discusses the credit rating agencies and their role in the recent financial crisis.  In a [...] Read more > >

Nice explanation …

Last week, FASB Chairman Robert Herz submitted a letter to Congressman Barney Frank, Chairman of the House Financial Services Committee, and Congressman Spencer Bachus, Ranking Minority Member, regarding accounting rules that were being used (or misused) by Lehman Brothers prior to its bankruptcy in 2008. The letter, which explains the relevant accounting guidance, was entered [...] Read more > >

Account for This!

A policy proposal floating around these days is to require banks to issue contingent convertible debt: MY [Mankiw's] favorite proposal is to require banks, and perhaps a broad class of financial institutions, to sell contingent debt that can be converted to equity when a regulator deems that these institutions have insufficient capital. This debt would [...] Read more > >

Why isn't there …

The other day, a PhD student here at Texas asked me for an advanced accounting book that had deferred tax coverage in it. She’s a tax person and was wanting to re-fuel her knowledge of this area before she started her summer paper. I laughed and said good luck on that one! I just started [...] Read more > >

Why isn’t there …

The other day, a PhD student here at Texas asked me for an advanced accounting book that had deferred tax coverage in it. She’s a tax person and was wanting to re-fuel her knowledge of this area before she started her summer paper. I laughed and said good luck on that one! I just started [...] Read more > >

Recycling Review Reports

Could AAA publications do this?  Submit to The Accounting Review, get rejected, but have your reports forwarded to a Section journal or Horizons for a decision there.  Read more about what the field of economics is doing here. Read more > >

Impossible Accounting–Health Care Edition

It sure seems hard to account for revenue, leasing, derivative…you name it.  Well, let’s add insurance loss ratios to the list.  The only difference is that this is a Congressional matter, not (just?) financial reporting:  take a look here. Read more > >

CFTC Approves Exchange for Trading Box Office Receipt Derivatives (but reserves judgment on the contracts themselves)

The US Commodities Furtures Trading Commission has approved an interesting exchange: CHICAGO (April 16, 2010) –– Media Derivatives (“MDEX”) is pleased to announce that it has received approval from the U.S. Commodity Futures Trading Commission (“CFTC”) as a designated contract market. Media Derivatives will operate under the name The Trend Exchange® (“TrendEx”). TrendEx is the [...] Read more > >

Sauce for the goose (business), sauce for the gander (government)

Over the course of the past few months, I’ve reviewed a number of books and papers that were nominated for the 2010 AAA Wildman Medal Award, which seeks to recognize papers that use rigorous research methods to deal with current issues in accounting practice. One of the nominated papers was entitled, “Consequences of GAAP disclosure [...] Read more > >

FASB Selects Next Research Fellow

The Financial Accounting Standards Board (FASB) is pleased to announce that Phil Shane, Professor of Accounting at the University of Colorado at Boulder and the University of Auckland, has accepted the FASB 2010-2011 Research Fellowship, which will begin in August. Phil will be replacing Jeffrey Hales, who will complete his term and return to his [...] Read more > >

Have you seen this? New Board?

Blue Ribbon Panel to Weigh Launching Standard Setter for U.S. Private Companies NEW YORK—Members of a blue ribbon panel formed to address private company financial reporting in the Unites States said April 12 the group would decide whether to set up a new and separate standard-setting body that would address and write accounting standards for [...] Read more > >

SFAS 166/167

I just got my Credit Suisse report entitled OFF AGAIN, ON AGAIN? re 166 and 167. I don’t know how many of you tried to teach this last year or now, but this is one difficult to get one’s arms around standard. It is not so concept-based. The underlying transactions are a little complicated, but [...] Read more > >

Who uses SAS? Who uses STATA? Why?

Do you use SAS or STATA? Why? I use SAS, and am (a) an experimentalist, and (b) old. Are those the relevant variables? Are there substantive differences in which is best for certain tasks, or is it just a matter of familiarity? Do they play well together? Does anyone use them both in sequence (e.g., [...] Read more > >

Blue Ribbon Panel on Standard Setting for Private Companies

Next Monday (April 12) is the first meeting of the Blue Ribbon Panel on Standard Setting for Private Companies.  This has the potential to be a very wide-ranging and interesting continuation of a very long-standing discussion about GAAP for non-public entities. As I understand it, many years ago, the debate began and was labeled the [...] Read more > >