Roundtable: Do Fair Values Predict Future Financial Performance?

Mark Evans of Indiana University will lead our next roundtable discussion, Wednesday March 3rd, 11am ET).  Here is the abstract from his recent paper, written with Leslie Hodder and Pat Hopkins, exploring fair value in commercial banks: For a sample of commercial banks during 1994–2008, we find that accumulated fair value adjustments for investment securities [...] Read more > >

SEC says IFRS still on hold

The SEC essentially punted today on the decision to adopt IFRS in the U.S.  Acknowledging that the SEC is in the same position they were in November 2008 (when the proposed roadmap was originally issued), Mary Schapiro said the SEC hopes to be in a position by 2011 to make this decision. One of the [...] Read more > >

Roundtable on Emissions Trading Schemes

The February 23rd (4pm ET) Roundtable will feature a discussion of Emissions Trading Schemes, led by University of Colorado research Naomi Soderstrom, along with insights from the Assistant Project Manager on the FASB’s Emission Trading Schemes project, Shayne Kuhaneck. Click here for details on the session. * UPDATE: The archived video of this Round Table [...] Read more > >

Roundtable on Emissions Trading Schemes

The February 23rd Roundtable will feature a discussion of Emissions Trading Schemes, led by University of Colorado research Naomi Soderstrom, along with insights from the Assistant Project Manager on the FASB’s Emission Trading Schemes project, Shayne Kuhaneck. Many accountants have only passing familiarity with Emissions Trading Schemes.  As the FASB project page describes, Emission trading [...] Read more > >

Aaron Beam & Weston Smith

If you weren’t there for yesterday’s roundtable with Aaron Beam & Weston Smith, I strongly urge you to view the archived copy of it.  I was fascinated by their rendition of the Health South fraud (both CFO’s there).  How many journal entries do you think it took each quarter to manage the books.  You’ll be [...] Read more > >

Aaron Beam & Weston Smith

If you weren’t there for yesterday’s roundtable with Aaron Beam & Weston Smith, I strongly urge you to view the archived copy of it.  I was fascinated by their rendition of the Health South fraud (both CFO’s there).  How many journal entries do you think it took each quarter to manage the books.  You’ll be [...] Read more > >

Interesting Frontline on derivatives

A recent FrontLine episode, called “The Warning”, was about Brooksley Born, who was director of the Commodity Futures Trading Commission for some years during the Clinton administration.  The show made a strong case that she tried very hard to warn the financial world up through 1998 that OTC derivatives were a very big risk.  Alan [...] Read more > >

New Location for FASRI Roundtables

Until you hear otherwise, FASRI Roundtables will take place at a new location.  If you participate via Second Life, click this link to be taken directly to the new location.  If you watch via the web, there is no change:  the page is still here.  This change is effective today, for Aaron Beam’s talk. Read more > >

A new issue of the FASB Update

In the regular issue of the FASB Action Alert (February 11) that comes into my inbox, there was a link to a document called “FASB Update, Financial Statement User Edition.”  I haven’t seen this particular form of the FASB Update before; perhaps I’m just not aware of this series.  Here’s the link.  It provides a [...] Read more > >

Fix It (Part II): Self-referential irony department

Those of you who view this site on Internet Explorer are probably finding the posts largely unreadable.  I am hoping to get this fixed in the next day or so.  If you have access to Mozilla Firefox, Chrome or another browser, you should be able to see the site. Sorry! Read more > >

Internal control – time for a study

I don’t know what kind of study it might be, but seems like big versus small firms and internal control testing might rise again as an issue.  Did you hear about the recent fraud at the headphone company.  It was in CFO.com.  Let me give you a brief cut from the article. Fraud Case Casts [...] Read more > >

No RoundTable Today

Due to some very busy schedules, there won’t be any roundtable discussion today.  But look for some announcements soon for upcoming events. Read more > >

Fair Value Study: Hot off the Presses

Mark Evans, Leslie Hodder and Pat Hopkins just posted a paper on SSRN indicating some benefits to fair value accounting in financial institutions.  From the abstract: For a sample of commercial banks during 1994–2008, we find that accumulated fair value adjustments for investment securities are positively associated with realized income from investment securities in the [...] Read more > >

Round Table – Steven Orpurt

On Wednesday, Feb 3rd, 11 am ET, we will be joined by Steven Orpurt of Pepperdine University. Steve will be discussing his paper, entitled “Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows and Earnings? This work is co-authored with Yoonseok Zang, also of Singapore Management University, and was recently published in The [...] Read more > >

Opportunties for research on climate change?

Wow, i just learned the following.  Did not know this … From:  Comment from Michael A. Moran and Abby Joseph Cohen, Goldman Sachs: Global Markets Institute – Accounting Policy Update: SEC takes action on climate change disclosures On January 27, 2010 the SEC approved, by a 3-2 vote, new interpretative guidance on existing disclosure requirements [...] Read more > >

Debt-to-Equity and Lease Renewal Options

To what extent do lenders or credit analysts care about lease renewal options? In the proposed lease accounting model, lessees will capitalize the longest lease term that is more likely than not to occur. This means that renewal periods that a lessee is not obligated to renew will be measured as part of the lease [...] Read more > >

Roundtable Discussion: Stephen Ryan

Stephen Ryan (NYU) joins FASRI to talk about his recent research on the fair value option in the banking industry.  Stephen is one of the most respected accounting academics studying banking and financial instruments these days, so I expect people will have plenty of questions beyond the research study that will form the heart of [...] Read more > >

Measuring onerous contracts under IAS 37 and the proposed revenue recognition model

I was excited this past week to read that the IASB recently published a second exposure draft on a portion of IAS 37 Provisions, Contingent Liabilities, and Contingent Assets. I know, excitement might be too strong of a word, but I was looking forward to seeing whether the IASB’s decision on how to measure onerous [...] Read more > >

Loan Loss Accounting

Typically at the start of every New Year, we spend time thinking about the prior year and all the interesting and exciting events that have happened. 2009 was certainly a banner year for accounting standard setting. As I was thinking back over all that happened and trying to determine what was the most surprising thing [...] Read more > >

More on Jim Leisenring's session

I was thinking about Jim’s comments about research helping standard setters.  A long time ago there was some debate on the ability of archival researchers to do ex ante research … some back and forth on that point.  I’m not an archival person so I don’t think about whether they can do ex ante or not, and [...] Read more > >