Business Commons^™

Fast Track To Direct Cash Flow Reporting, Paul Miller, Paul Bahnson

Paul R. Bahnson

Even though good reasons abound for using the direct method of reporting operating cash flow, almost all managers choose the indirect method. We, and others whose opinions we respect, consider the direct method to be far superior to the indirect because it generates information that's more useful to the capital markets for assessing the amounts, timing, and uncertainty of a company's future cash flows. Contrary to today's conventional wisdom, the direct method isn't hard to apply. In fact, with the system modifications described in this article, it will be easy to provide the information financial statement users want. After applying …

Perfect Storm Prompts Changes In Pension Accounting, Paul Miller, Paul Bahnson

Paul R. Bahnson

Over the first half of the decade, pension and other postretirement benefit plans were hit hard by a perfect storm of economic forces. Investment returns were irregular and often less than expected. Falling interest rates caused employers' obligations to soar. And many old-line industries experienced a cash crunch that encouraged management to offer increased pension benefits in lieu of higher wages. A shift in demographics has resulted in far fewer younger workers and many more who have retired or are about to do so.

Noncontrolling Interest: Much More Than A Name Change, Paul Bahnson, Brian Mcallister, Paul Miller

Paul R. Bahnson

In December 2007, FASB adopted two new business combination standards: Statement no. 141(R), Business Combinations, and Statement no. 160, Noncontrolling Interests in Consolidated Financial Statements. Both culminated years of work directed at improving reporting for consolidated entities. This article summarizes the most important changes created by Statement no. 160, which is effective for fiscal years beginning after Dec 15, 2008. The most visible innovation in Statement no. 160 is the name change from "minority interest" to "noncontrolling interest." A major change affecting income reporting concerns the treatment of the earnings related to midyear acquisitions. Statement no. 160 will require new …

Quality Financial Reporting: Why You Need It And How To Implement It, Paul Miller, Paul Bahnson

Paul R. Bahnson

Many of today's corporate managers use a financial reporting strategy that is irrational, charge the authors of this article. Instead, they offer a new strategy—along with a useful evaluation checklist, and advice for implementation.

Refining Fair Value Measurement, Paul Miller, Paul Bahnson

Paul R. Bahnson

Financial Accounting Standards Board (FASB) issued a standard in fall 2006 with the understated title Fair Value Measurements. On one hand, FASB Statement no. 157 appears to shake the foundation of historical cost measurement. On the other, it appears innocuous because it does not compel greater use of fair values. CPA's should quickly acquaint themselves with the new rule, since it becomes effective for annual statements for fiscal years beginning after Nov 15, 2007, and for interim reports prepared in that initial fiscal year.

The Top 10 Reasons To Fix The Fasb’S Conceptual Framework, Paul Miller, Paul Bahnson

Paul R. Bahnson

The Financial Accounting Standards Board (FASB) produced most of its Conceptual Framework (CFW) more than 20 years ago in a project that began in the 1970s. It achieved notable positive results, yet it isn't without flaws. These blemishes originate from several sources, including political pressures. But time has yielded a new environment that enables the FASB to fix the shortcomings.

When "Aha Moments" Make All The Difference, Nancy Napier, Paul Bahnson, Roy Glen, Cheryl Maille, Kirk Smith, Harry White

Paul R. Bahnson

What makes a seasoned group of faculty members sit up straight and learn something remarkable? It happens when the members go through a process to develop a new product and realize that what (should) happen is not what does happen and that the difference comes from the "aha moments" along the way. In this article, the authors track the development of a new venture start up—of a young entrepreneurial business school, lacking regional or national image, and the process faculty members experienced in creating a highly differentiated potentially brand-creating new executive MBA program. Specifically, they reflect on the design and …

A Penny For Your Thoughts: Sizing Up Manipulative Eps Rounding, Paul Miller, Greg Martin, Paul Bahnson

Paul R. Bahnson

For as long as public companies have been required to report earnings per share (EPS), there probably have been misguided managers who try to nudge it higher.

We’ve written this article to unveil a method of manipulating EPS that, near as we can tell, hasn’t yet been described in print. Because any attempt to manipulate EPS creates uncertainty and uncomfortable risk for investors—which, in turn, could create capital market inefficiencies and produce discounted stock prices—we want to expose this inappropriate and unproductive gamesmanship and then help eliminate it.

Our specific concern is that a troubling number of managers, and perhaps …

Continuing The Normative Dialog: Illuminating The Asset/Liability Theory, Paul Miller, Paul Bahnson

Paul R. Bahnson

This paper responds to the call in Dichev (2008) for rekindling the public discussion of normative accounting theories and analyses. Our goal is to enable and encourage members of the accounting academy to participate productively in dialogs with policy makers and to bring normative theory and analysis into their classrooms to help prepare students for more productive careers as practitioners or educators. Toward that end, we begin by explaining our position on the functional role for normativism. Next we offer up five guidelines to be applied in constructing and analyzing normative accounting theories. The guidelines are then used to frame …

Heading Off A Looming Plague Of Gains Taking: Another Reason To Adopt Fair Value Accounting, Paul Bahnson

Paul R. Bahnson

No abstract provided.

Principles Without Principles: Questions About The Implementation Of Ifrs In The U.S., Paul Bahnson

Paul R. Bahnson

No abstract provided.

Using Technology To Facilitate Learning In Large Sections Of Introductory Accounting, Paul Bahnson

Paul R. Bahnson

No abstract provided.

The Fasb : The People, The Process And The Politics, Paul Miller, Rodney Redding, Paul Bahnson

Paul R. Bahnson

No abstract provided.