Congress Wants To See More of Bob Herz

From the Financial Executives Institute blog (now added to our blogroll), passage by the House of the ‘Promoting Transparency in Financial Reporting Act, H.R. 2664: …among other things, PTFRA would require that, beginning in 2009, and for five years thereafter, annual testimony of the SEC, FASB and PCAOB Chairmen (or their designees) would be provided [...] Read more > >

Round Table Discussion on Changes in the Revenue-Expense Relation

On Wednesday, September 16th, 11 am ET, Dain Donelson, Ross Jennings, and John McInnis, all of the University of Texas at Austin, will join us to discuss their recent paper entitled “Changes over Time in the Revenue-Expense Relation: Accounting or Economics?”  Their paper follows the work of Dichev and Tang (2008), who document Read more > >

Volokh Conspiracy Lawyers Lend FASRI a Hand

Last week I suggested you take a look at how lawyers view accounting, courtesy of the popular and thoughtful legal blog, The Volokh Conspiracy.  This week, I am glad to report that conspirator (and American University law professor) Kenneth Anderson has given me the opportunity to write a guest post getting lawyers insights into a [...] Read more > >

Fed Accused of Academic Capture–Is FASB next?

Economist-bashing has been a popular sport lately, with current criticism coming from the left.  Paul Krugman weighed in with a long piece in the New York Times, and now the Huffington Post has an article claiming that the Federal Reserve has quashed research critical of its policies by spreading around lots of money and prestige.  [...] Read more > >

Fair Value Quiz

What industries have the largest percentage of their assets measured under fair value standards?  Whisper your answer to the person sitting next to you before clicking to see the answer, courtesy of this paper by Gartenberg and Serafeim of HBS. Read more > >

In Praise of Mark-To-Management

Georgetown finance professor James Angel has written an interesting piece praising the benefits of what he calls mark-to-management (or what we fair value wonks would call Level 3 inputs), and argues the benefits of including all three dimensions of valuation (cost, market price and management models) in disclosures.  Of course we can’t recognize all of [...] Read more > >

Required FV disclosures — do we have inconsistency in measurement?

Do we have inconsistency in application of FV measurement?  No surprise I guess.  Note this:  Beginning in Q2 2009, the fv of companies’ loan portfolios was a required quarterly disclosure.  Previously, it was only an annual disclosure. Review some banks.  You might find a huge discrepancy in the fraction .. fv/carrying value.  Certainly banks have [...] Read more > >

FASB Proposes Update to Fair Value Disclosure Requirements

FASB is circulating an Accounting Standards Update that would clarify required disclosures about fair values.  Particularly noteworthy is that the Update proposes a detailed “roll forward” of fair value measurements using significant unobservable inputs (“Level 3″), which would provide a clear breakdown of how the total level 3 measurements changed as a result of: transfers [...] Read more > >

Take a Break — and See How Lawyers View Accounting

We were going to have a Round Table discussion this coming week, but Labor Day has messed things up a little.  So instead, click on this link to see how lawyers view accounting, courtesy of the excellent law-professor blog The Volokh Conspiracy.  Lesson 1 is:  most of them know surprisingly little, even if they are [...] Read more > >

History Lesson

This is a guest post by accounting historian Steve Zeff.  The title is mine, though.  This article by Steve is recommended for those who want their history lesson extended– RJB There has been some discussion of “matching” and the income statement v. balance sheet approaches. Jeff Wilks wrote, “I’d just love to see someone explain [...] Read more > >

Teaching SCF and need a nugget on cash equivalents – see attached.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a0kvXdQtvCWw Read more > >

FASB-Friendly Research Report on Financial Statement Presentation

To prepare for tomorrow’s round table discussion (Wed Sept 2, 11am ET) on FASRI’s Financial Statement Presentation research, take a look at this report on an experiment I conducted with Frank Hodge, Pat Hopkins and Kristi Rennekamp.  A few points I’d like to make off the bat: Read more > >

Quite the humorous nugget here…

Ever teach the statement of cash flows–indirect method?  Have you had that class going along with you, they are really getting it … … and then it just becomes overload on the adjustments and you lose them??  Check out this link. It is hilarious. Michael Granof here at UT shared this with me this a.m.  [...] Read more > >

Well, not really a blog but a question

Hi everyone, So i was yabbering on and on today in class about the risk & uncertainty items in the financial statements & notes … and those in the MD&A. I was saying the MD&A, which is in the front end of the annual report, etc… blah blah blah.  A student came up and said [...] Read more > >

Conducting Research with the FASB: Round Table and Call for Participation

If you read our ABOUT page at the top menu of the FASRI website, you will see that FASRI doesn’t just lead discussions about accounting research (as fascinating as that may be).  We also actively support researchers who are willing to work with FASB staff to conduct original research studies.  At next week’s Round Table [...] Read more > >

Fair Value Accounting From the Mouths of Babes Students: Zoe-Vonna Palmrose's 2005 AAA Address

A few weeks ago, in a post entitled “Why Do Standard Setters Make Such Awful Decisions?,”  I cited Zoe-Vonna Palmrose as one of several academics who think that the FASB’s embrace of fair-value accounting is so obviously mistaken that even children could see it.  Bill Kinney pointed out that my recollection of Zoe-Vonna’s 2005 presentation [...] Read more > >

Fair Value Accounting From the Mouths of Babes Students: Zoe-Vonna Palmrose’s 2005 AAA Address

A few weeks ago, in a post entitled “Why Do Standard Setters Make Such Awful Decisions?,”  I cited Zoe-Vonna Palmrose as one of several academics who think that the FASB’s embrace of fair-value accounting is so obviously mistaken that even children could see it.  Bill Kinney pointed out that my recollection of Zoe-Vonna’s 2005 presentation [...] Read more > >

FASB Securitization Update

Need to know about new securitization rules for your classes this fall?  Have no fear!  Check out this webcast being offered by the FASB, which promises to be an excellent chance to catch up on the new rules related to securitization: Read more > >

Job Opening: FASRI Editorial Assistant

The FASB has approved an Editorial Assistant position for FASRI.net.  This highly visible job provides an excellent opportunity for someone who likes writing and is interested in policy-oriented accounting research.   While the details of the position will be open to modification, based on the interests of the applicant and the changing needs of FASRI, key [...] Read more > >

Round Table Discussion on Proposed Changes to Revenue Recognition

On Tuesday, August 25th, 4 pm ET, we will be joined by Ted Christensen and Jeff Wilks (both of Brigham Young University) as we discuss the FASB and IASB’s proposed changes to revenue recognition. As you may know, Jeff played a significant role in the FASB/IASB joint project on revenue recognition during his time as [...] Read more > >