I came across an interesting academic study: “The effects of investors’ information processing limitations when incorporating return on assets into their investment decisions.” The authors are Max Hewitt of the University of Arizona; and Jessica Watkins and Teri Lombardi Yohn of Indiana University. As with all such studies, I can’t claim to be capable of…
I came across an interesting blog post by Jason Voss, CFA : The Top Five Accounting Mistakes Analysts Make It’s actually several years old, and presumably written in the context of US GAAP rather than IFRS. Even so, I thought it was a very stimulating reference point, so here are the five mistakes, along with…
A recent article on CCH Daily summarized a report from Moody’s Investor’s Service on “five critical drawbacks in debt reporting, given an environment with low interest rates and volatile currencies.” The underlying report doesn’t appear to be easily accessible anymore, so here’s the summary provided by CCH: “The report says the first concern is that…
ESG: good companies can make good stocks, announces a recent release by Bank of America Merrill Lynch. Here’s how it expands on that: It’s not just for tree-huggers – incorporating environmental, social and corporate governance (ESG) considerations into one’s framework is critical. First, these metrics have been strong indicators of future volatility, earnings risk, price…
“Investors Worry Revenue Rules Will Allow Earnings Manipulation” announces a recent article on the Bloomberg BNA website. Here are some extracts from the article, written by Steve Burkholder: Some investors worry that revenue accounting rules that public companies must begin using in January will yield inconsistent reporting and allow earnings manipulation, according to Bloomberg BNA…
We recently touched on CSA Consultation Paper 51-404 Considerations for Reducing Regulatory Burden for Non-Investment Fund Reporting Issuers, seeking “comments on potential options for reducing regulatory burden for non-investment fund reporting issuers in the public markets.” I noted before that the very choice of the term “reducing regulatory burden” suggests a predisposition to find burdensome things that can…
A European issue with going concern disclosures in interim statements Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 18th edition: “Significant doubts were cast upon an issuer’s ability to continue operating…
“FRC Lab report confirms the importance of business model disclosure to investors,” announces a recent news release: Here’s more: “The Financial Reporting Council’s (FRC) Financial Reporting Lab has published a report on Business Model Reporting which provides valuable insight for companies on the importance of business model information to investors, and the type of information they are…
“IASB outlines steps to improve disclosures in financial statements,” announces a recent news release. Here’s how the release sums up those steps: “The International Accounting Standards Board (the Board) has today published a Discussion Paper that suggests principles to make disclosures in financial statements more effective. The Discussion Paper Disclosure Initiative—Principles of Disclosure seeks public feedback on…
Some of Canada’s provincial regulators recently released CSA Multilateral Staff Notice 51-349 Report on the Review of Investment Entities and Guide for Disclosure Improvements, which “summarizes key findings from an Ontario Securities Commission (OSC) staff review of the continuous disclosure of reporting issuers that meet the definition of an investment entity under IFRS 10 Consolidated Financial Statements.” The…
John Hughes IFRS Blog 