scholarly journals New financial statement reporting requirements for healthcare entities and insurers

2013 ◽  
Vol 2 (3) ◽  
pp. 21
Author(s):  
Alan Reinstein ◽  
Natalie Tatiana Churyk
Keyword(s):  
Health Care ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Statement ◽  
Financial Accounting Standards Board ◽  
Reporting Requirements ◽  
The Future

Since 2010, the Financial Accounting Standards Board issued several Accounting Standards Updates [ASUs] and other Authoritative Standards that affect Health Care Entities and Insurers, requiring them to more consistently account for and disclose their reporting of charitable and other costs. Also, in light of the main portions of Obama Care becoming effective in 2014, the FASB required such entities to more consistently and broadly disclose how they account for their bad debts, especially since the new law will limit such payments in the future. This article summarizes the provisions of the new Standards and provides examples of their application, in order to help health care entities and insurers understand the new provisions and implications.  

scholarly journals The Steep Rise Of Gift Card Purchases By The Consumer Is Changing The Method Of Accounting And Reporting Of Gift Card Income By Corporate Retailers

2011 ◽  
Vol 6 (4) ◽  
Author(s):  
Carla Feinson
Keyword(s):  
State Legislatures ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Annual Reports ◽  
Financial Accounting Standards Board ◽  
Font Size ◽  
Publicly Traded ◽  
Accounting Disclosures ◽  
Reporting Requirements ◽  
Gift Card

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The increasing popularity of gift card purchases by consumers and the corresponding increase in gift card sales in the retail industry has triggered changes in accounting disclosures and reporting requirements. The Financial Accounting Standards board, the Security and Exchange Commission and individual state legislatures have all begun to focused their attention on the various issues that are continually coming to the forefront as a result of the continuing rise in gift card transactions. The promulgations of these authoritative bodies have in turn affected the format and wording of the disclosures that are found in the annual reports or SEC filings of publicly held retail companies. An examination of 75 publicly traded retailers not only shows the similarities and differences of how gift card sales have affected disclosures but also how the very nature of gift card contracts and the ramifications of gift card sales has led to so many specific reporting and accounting difficulties.</span></span></p>

scholarly journals Accounting for Stock Options

2005 ◽  
Vol 19 (4) ◽  
pp. 115-134 ◽  
Author(s):  
Jeremy Bulow ◽  
John B Shoven
Keyword(s):  
Stock Options ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Statement ◽  
Financial Accounting Standards Board ◽  
Public Companies ◽  
Valuation Method ◽  
History Of ◽  
Reported Earnings

As public companies begin their new fiscal years, they are implementing a new and controversial Financial Accounting Standards Board (FASB, 2004) proposal for expensing stock options. Applied to 2003 and 2004, this rule would have slashed reported earnings of the Standard & Poor's 500 by 8.6 and 7.4 percent; the effect in the bubble years would have been more than twice as large. We describe the history of how these options have been expensed for financial statement purposes. We assess the new FASB approach and find that it is deeply flawed. The main purpose of the paper is to describe an alternative options expense valuation method, the Bulow-Shoven approach, that addresses these problems. Our approach is simpler than the new FASB methodology, less prone to earnings manipulation and more consistent with the way the rest of compensation is treated in financial statements.

scholarly journals The Accounting Profession's Engagement with Accounting Standards: Conceptualizing Accounting Complexity through Big 4 Comment Letters

2018 ◽  
Vol 37 (2) ◽  
pp. 175-196 ◽  
Author(s):  
Lisa Baudot ◽  
Kristina C. Demek ◽  
Zhongwei Huang
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Three Dimensions ◽  
Financial Statement ◽  
Financial Accounting Standards Board ◽  
Significant Issue ◽  
Firm Level ◽  
Big 4 ◽  
Audit Firms ◽  
Comment Letters

SUMMARY Regulators, standard setters, and the accounting profession maintain that complexity in accounting standards is a significant issue. However, it is unclear what complexity means in the context of accounting standards. This study examines, via comment letter submissions, the accounting profession's engagement with complexity in accounting standards. We analyze comment letters submitted to the Financial Accounting Standards Board (FASB) over a 12-year period and find the profession characterizes complexity through three dimensions—multiplicity, diversity, and interrelatedness. We examine the Big 4's discourse on these dimensions and observe consistency between audit firms in their discourse on several features. For instance, we find that firms primarily oppose proposed FASB changes when firms perceive those changes to increase rather than decrease complexity. Additionally, firms perceive proposed changes to affect financial statement preparers more often than other stakeholders. However, the Big 4 do not hold universal opinions as to the root causes of complexity. At the cross-firm level, we find inconsistencies that imply heterogeneity in the Big 4's discourse on root causes. Such inconsistency may, in and of itself, construct accounting complexity. Ultimately, we maintain that the Big 4's engagement with accounting standards has consequences for how complexity is thought about and acted upon in accounting standards.

Issues in Lessor Accounting: The Forgotten Half of Lease Accounting

2011 ◽  
Vol 25 (2) ◽  
pp. 247-266 ◽  
Author(s):  
Mark P Bauman ◽  
Richard N Francis
Keyword(s):  
Balance Sheet ◽  
Accounting Standards ◽  
Decision Makers ◽  
Financial Accounting ◽  
Financial Statement ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Disclosure Quality ◽  
Residual Values ◽  
Lease Accounting

SYNOPSIS In July 2006, the International Accounting Standards Board and the Financial Accounting Standards Board (the “Boards”) added a leasing project to their agenda. In August 2010, the Boards jointly released an exposure draft proposing a “right-of-use” model for the recognition of lease-related assets and liabilities. In their deliberations, the Boards noted numerous studies focusing on lessee accounting, but very little research examining lessor-related topics. To address this gap in the literature, this paper identifies key reporting and disclosure issues associated with lessors, and suggests improvements that could be incorporated into lease accounting guidance. This study is based on an analysis of the financial statement disclosures of 57 of the 100 largest equipment lessors in the U.S. market. Disclosure quality, residual values, and the balance sheet impact of the proposal are examined, and numerous suggestions are offered to enhance the usefulness of lessor financial statement disclosures for decision makers.

scholarly journals Segment Reporting: The Aftermath Effects Of Statement Of Financial Accounting Standards No. 131

2011 ◽  
Vol 18 (4) ◽  
Author(s):  
Brian B. Stanko ◽  
John Utterback ◽  
Jun Fitzgerald
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
After Effects ◽  
Segment Reporting ◽  
Related Information ◽  
Reporting Requirements ◽  
Normal Text ◽  
Before And After ◽  
The Subject

<p class="MsoBodyTextIndent" style="text-align: justify; line-height: normal; text-indent: 0in; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">This article addresses the subject of segment reporting and the after effects of SFAS No. 131 &ldquo;Disclosures about Segments of an Enterprise and Related Information.&rdquo;<span style="mso-spacerun: yes;">&nbsp; </span>A comparative analysis of the reporting requirements under SFAS No. 14 and SFAS No. 131 is first presented followed with an examination of corporate disclosures before and after the release of SFAS No. 131.<span style="mso-spacerun: yes;">&nbsp; </span>The results are discussed in the context of the Financial Accounting Standards Board&rsquo;s reporting objective &ldquo;to better understand an enterprises performance.&rdquo; </span></span></p>

Effects of Comprehensive-Income Characteristics on Nonprofessional Investors' Judgments: The Role of Financial-Statement Presentation Format

2000 ◽  
Vol 75 (2) ◽  
pp. 179-207 ◽  
Author(s):  
Laureen A. Maines ◽  
Linda S. McDaniel
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Statement ◽  
Presentation Format ◽  
Financial Accounting Standards Board ◽  
Management Performance ◽  
Nonprofessional Investors ◽  
Comprehensive Income ◽  
Presentation Formats

Statement of Financial Accounting Standards (SFAS) No. 130 requires companies to report comprehensive income in a primary financial statement, but allows its presentation in either a statement of comprehensive income or a statement of stockholders' equity (Financial Accounting Standards Board [FASB] 1997). In an experiment, we examine whether and how alternative presentation formats affect nonprofessional investors' processing of comprehensive-income information, specifically, information disclosing the volatility of unrealized gains on available-for-sale marketable securities. The results show that nonprofessional investors' judgments of corporate and management performance reflect the volatility of comprehensive income only when it is presented in a statement of comprehensive income. We provide evidence consistent with our psychology-based framework that these findings occur because format affects how nonprofessional investors weight comprehensive-income information and not whether they acquire this information or how they evaluate it.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on FASB Exposure Draft of Proposed Accounting Standard Update: Notes to Financial Statements (Topic 235): Assessing Whether Disclosures Are Material

2016 ◽  
Vol 10 (2) ◽  
pp. C1-C9
Author(s):  
Urton L. Anderson ◽  
Marcus M. Doxey ◽  
Marshall A. Geiger ◽  
Willie E. Gist ◽  
Diane J. Janvrin ◽  
...  
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Accounting ◽  
Financial Statement ◽  
Financial Accounting Standards Board ◽  
Accounting Standard ◽  
Stated Objective ◽  
Auditing Standards ◽  
The Way

SUMMARY On September 24, 2015 the Financial Accounting Standards Board (FASB) solicited public comments on a proposed Accounting Standards Update of the FASB Accounting Standards Codification. The stated objective is to improve the effectiveness of footnote disclosures to financial statement users. The focus of the Update is to clarify the way materiality should be considered when assessing requirements for providing information in the notes. The comment period ended on December 8, 2015. This commentary summarizes the contributors' views on these amendments. Data Availability: The exposure draft of Proposed Accounting Standard Update: Notes to Financial Statements (Topic 235): Assessing Whether Disclosures Are Material is available at: http://www.fasb.org/cs/ContentServer?c= Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176166402325

Response to the Financial Accounting Standards Board’s and the International Accounting Standard Board’s Joint Discussion Paper Entitled Preliminary Views on Financial Statement Presentation

2010 ◽  
Vol 24 (1) ◽  
pp. 149-158 ◽  
Author(s):  
Stephen Moehrle ◽  
Thomas Stober ◽  
Karim Jamal ◽  
Robert Bloomfield ◽  
Theodore E. Christensen ◽  
...  
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Statement ◽  
International Accounting ◽  
Financial Accounting Standards Board ◽  
Discussion Paper ◽  
Accounting Standard ◽  
Proposed Model ◽  
Financial Decision ◽  
International Accounting Standard

SYNOPSIS: The Financial Accounting Standards Board (hereafter, FASB) and the International Accounting Standard Board (hereafter, IASB) issued a joint discussion paper titled Preliminary Views on Financial Statement Presentation. The Boards are seeking comments on whether their proposed model for financial statement presentation would improve the usefulness of the financial statement information for financial decision makers. This paper sets forth the American Accounting Association Financial Accounting Standards Committee (hereafter, the committee) summary comments as well as responses to several of the FASB’s and IASB’s (hereafter, jointly mentioned, the Boards) specific objectives and principles-related questions. Overall, the committee believes that the model has several appealing features, but also has several potential problems. Many of the problems discussed related to potential learning impediments for users to adapt to the new presentation format.

The American Accounting Association’s Financial Reporting Policy Committee’s Response to the Preliminary Views on Financial Statement Presentation

2010 ◽  
Vol 24 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Mark Bradshaw ◽  
Carolyn Callahan ◽  
Jack Ciesielski ◽  
Elizabeth Gordon ◽  
Mark Kohlbeck ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Accounting Standards ◽  
Income Taxes ◽  
Financial Accounting ◽  
Financial Statement ◽  
Management Approach ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Discussion Paper

SYNOPSIS: The Financial Accounting Standards Board and the International Accounting Standards Board (hereafter, the Boards) issued the discussion paper Preliminary Views on Financial Statement Presentation in late 2008. The Boards propose to significantly reconfigure the presentation of financial statements to offer parallel statements with standardized partitions of each financial statement into five categories: business activities, financing activities, income taxes, discontinued operations, and equity. The allocation of transactions within these partitions will depend crucially on management’s assessment of each transaction (i.e., the management approach). In this paper we comment on the proposal, with particular emphasis on empirical evidence and relevant theories from academic research. We highlight benefits of the proposed changes as well as some possible concerns. We conclude that the objective of providing a cohesive picture of activities through a uniform standardization of each financial statement by activity is desirable, but the proposed criteria for how activities are categorized results in potentially aberrant or confusing outcomes. Thus, any dissatisfaction with the current financial statement format may be replaced with other criticisms. Finally, the current proposal relies on the effectiveness of the management approach, which can only be successful if managers embrace the proposed structure.

scholarly journals What The CPAs Think About The Proposed Financial Statement Presentation

2011 ◽  
Vol 7 (11) ◽  
Author(s):  
Stuart Shough
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Statement ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Discussion Paper ◽  
International Accounting Standards Board

The Financial Accounting Standards Board and the International Accounting Standards Board jointly issued a Discussion Paper soliciting comments on a proposed financial statement presentation. This paper presents the results from 605 CPA’s responses to selected questions asked in the Discussion Paper.

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