End IFRS groupthink now!

Does Canadian accounting suffer from groupthink? asks a recent Canadian Accountant article by Al Rosen The regular reader of this blog may immediately be expecting a further recitation of the ways in which I don’t agree with Rosen (as most recently executed here). But actually, on this occasion I’m going to downplay the aspects of…

A proposal under the influence – defining materiality

The IASB has issued an exposure draft Definition of Material, with comments to be received by January 15, 2018, and (in final form) Practice Statement 2 Making Materiality Judgments. The IASB hopes through the practice statement, as the news release puts it, to encourage “companies to apply judgment instead of using IFRS requirements as a…

Not immune to your consultations – proposed changes to IFRS on changes

The IASB has published for public consultation proposed narrow-scope amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, open for comment until January 15, 2018. The purpose of the proposed amendments is to help companies distinguish accounting policies from accounting estimates. The accompanying press release says: “The distinction is important because changes in accounting…

Limitations of investors – get on the same page!

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…