David Larcker
Eventually everything shows up in earnings and cash flow, but it shows up late.
Content: Quotation | Source: Knowledge@Wharton | Subjects: Accounting, Finance
Reduction in Restatements
A Resource Classification System
William Mcdonough
Former president of the Federal Reserve Bank of New York and current chairman of the Public Company Accounting Oversight Board (PCAOB).
Content: Thought Leader | Source: CFO Publishing | Subjects: Accounting, Management
Can ABM Outstay Its Welcome?
Creating one valid enterprisewide ABC/M model, developing a database and continuously feeding the model with current data isn’t enough to gain ABC/M’s maximum benefits. Companies also have to get people to accept this cost management strategy.
Content: Article | Author: Tad Leahy | Source: Business Finance Magazine | Subjects: Accounting, Finance
Burying the Past
Audit firms have gotten tougher-and board audit committees have, too.
Content: Article | Author: Mike Brewster | Source: Chief Executive | Subjects: Accounting, Industry Specific
Numbers Investors Can Trust
What counts isn’t the bottom line but rather how it is calculated.
Content: Article | Author: Tim Koller | Source: McKinsey Quarterly | Subjects: Accounting, Finance | Industry: Investing
Value reporting: it’s time to act
Companies today can no longer give a full picture of their value using traditional methods. There is now no excuse for failing to give the market what it wants.
Editor’s Note: see more details of the PwC ValueReporting framework at
Content: Article | Author: David Phillips | Source: European Business Forum (EBF) | Subjects: Accounting, Finance
Less Ado about Options
An alternative to the Black-Scholes valuation model (the binomial method) could dampen the controversy over expensing employee stock options.
Content: Article | Author: Craig Schneider | Source: CFO Publishing | Subjects: Accounting, Finance
Shrinking Options
Future Value: The $7 Trillion Challenge
Nearly 60 percent of the aggregate value of the US stock market is based on investor expectations of future growth. And because this future value tends to be concentrated in industries and companies that are built on intangible assets, it is critical to find better ways to recognize, report and manage these assets.
Content: Article | Authors: Göran Roos, John J. Ballow, Robert J. Thomas | Source: Outlook Journal (Accenture) | Subjects: Accounting, Economics
Knowledge Gap
The public’s misconception of what auditors do stands as a yawning fissure between CPAs and investors. How will the profession solve the problem?
Content: Article | Author: John McCarthy | Source: Insight | Subjects: Accounting, Industry Specific
The Top 10 Consolidation and Reporting Pitfalls and How To Avoid Them
Buying technology that supports and improves processes, and showing people how to use that technology, should improve consolidation and reporting. Why then do companies keep making the same mistakes?
Content: Article | Author: Tad Leahy | Source: Business Finance Magazine | Subjects: Accounting, Finance
What Drives Companies to Repurchase Their Stock?
In the late 1990s, the use of employee stock options increased dramatically, as did the use of stock repurchases. Both affect a company’s earnings per share. New research goes beyond the anecdotes to determine whether financial reporting incentives affect corporate managers’ decisions to repurchase their company’s stock.
Content: Article | Authors: Daniel A. Bens, Douglas J. Skinner, M.H. Franco Wong | Source: Capital Ideas | Subjects: Accounting, Finance | Industry: Finance / Banking
Do Accountants Who Act as Consultants Take Greater Care or Cut Corners?
In the wake of accounting scandals at companies like WorldCom, Tyco and Enron, Congress and regulators focused on the apparent conflict between accountants who were doing audits while earning high-margin consulting fees at the troubled firms. In a burst of reform, most accounting firms were forced to separate their auditing and consulting businesses. A new Wharton paper, however, challenges the idea that lucrative consulting contracts … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subjects: Accounting, Industry Specific
Does Graduate Education Contribute to Professional Accounting Success?
Wier, Stone, and Hunton look at whether, and if so what type of, graduate education is useful in predicting professional success in accounting. Using a fairly large data set (about 9000 total students), the authors conclude that graduate education does help (and it is not just a selection or halo effect!) but at differing degrees. For instance, performance evaluations for those with a … [ Read more ]
Content: Article | Authors: Benson Wier, Dan N. Stone, James E. Hunton | Source: Social Science Research Network (SSRN) | Subjects: Accounting, MBA Related
Sir David Tweedie
IASB chairman
Content: Thought Leader | Source: CFO Publishing | Subjects: Accounting, Management
Accounting Returns Revisited: Evidence of their Usefulness in Estimating Economic Returns
Danielson and Press provide an interesting look at how well accounting numbers can do to describe the economic returns of a firm. And they conclude, that in spite of the many complaints, accounting numbers do a pretty good job (not perfect) at proxying for actual economic returns. [FinanceProfessor.com Annotation]
Content: Article | Authors: Eric G. Press, Morris G. Danielson | Source: Social Science Research Network (SSRN) | Subjects: Accounting, Finance
Defining Intangible Assets
Conservatism in Accounting – Part I: Explanations and Implications
Conservatism is under attack from certain circles. For example, some (including even the FASB) are now suggesting it may be better to abandon conservatism in order to show more unbiased financial statements. In a surprisingly interesting article (NOTHING personal, but come on, it is about accounting conservatism!) Ross Watts looks at this issue and examines conservatism both from a both an historical/theoretical perspective … [ Read more ]
Content: Article | Author: Ross L. Watts | Source: Social Science Research Network (SSRN) | Subjects: Accounting, Finance