Financial Statement Analysis What a Corporate Tax Cut Might Mean CFO Magazine New research explores the impact of a potential tax-rate reduction on key financial measures. More A Cautionary Note about Robert Shiller’s CAPE CFA Digest The author evaluates why the cyclically adjusted price-to-earnings ratio (CAPE) may be biased, including changes in the composition of the U.S. Consumer Price Index, tax treatment, and earnings recognition over time. More Foreign Account Tax Compliance Act (FATCA) – An Update for Industry Professionals Webcast How will FATCA change your client relationships, business model, and systems and operations? Senior tax experts and industry executives provide an update on the latest developments. More Were Fair-Value Accounting Concerns Overblown? Market Integrity Insights Opponents of fair-value accounting were particularly voluble during the subprime mortgage-triggered credit crisis. But did they overstate their case? Vincent Papa, PhD, CFA, takes a look at the evidence. More How the Growth Outliers Do It CFA Digest The author finds that, paradoxically, stability is what enables companies to innovate and grow, and that management continuity, ethics, and shared values enable employees to innovate. More What a Corporate Tax Cut Might Mean A Cautionary Note about Robert Shiller’s CAPE Foreign Account Tax Compliance Act (FATCA) – An Update for Industry Professionals Were Fair-Value Accounting Concerns Overblown? How the Growth Outliers Do It From the 65th Annual Conference BNN Clip: We Don’t Rate Countries, We Rate Governments Says Fitch Ratings’ David Riley 17 May 2012 Fitch's group managing director of sovereign and supranational ratings discussed his outlook for Europe and the United States in an interview with BNN's Business Day. Read More View all From the Blog Investment Property “Entities” — Seriously? Measure All Real Estate Investments at Fair Value Mohini Singh, ACA 18 May 2012 Mohini Singh, ACA, examines why fair value is the most relevant measurement basis for all real estate properties — not just investment properties, as proposed by FASB. Read more → Bankable Insights: Overcoming Anxiety Is Key to Investment Success Jason Voss, CFA 16 May 2012 Anxiety is an instinctively powerful force that stands in the way of good investment decisions. Here are some timeless tips for overcoming its effects. Read more → Investment Company Accounting: FASB, IASB Proposals Step in the Right Direction, but … Mohini Singh, ACA 9 May 2012 While CFA Institute believes that the FASB and IASB proposals for investment company accounting are a step in the right direction, digging into the details of the proposed changes uncovers some problematic issues. Read more → View all Recently Posted Educational Resources AllEventsPublicationsWebcasts/PodcastsOnline LearningBuilding a Financial Model by The Marquee GroupThis intensive one-day course focuses on building an interactive and clearly-designed financial model of a company that adheres ...2012 Annual Pension Conference: Keeping Up With the Rapid Change in PensionsFor an industry that has been around for quite some time, pensions continue to experience rapid change on many fronts. The shift ...Course 2003 - U.S. GAAP Essentials - London Members of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1010 - IFRS Fundamentals - Abu DhabiMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1000 - IFRS Immersion Workshop - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Not So Smart: How Executives Spend Their Company’s CashRecent evidence for S&P 500 Index companies seems to confirm studies that show that companies are bad at ...How the Growth Outliers Do ItThe author asks the questions, How many companies grow revenues by 5% or more each year over a 5- or 10-year ...Income Inequality: Who Exactly Are the 1%?The wealthy in the United States are increasingly employed in finance, are well educated, generally marry ...Does IFRS Stand for InFormation RiSk?In the wake of the recent financial crises, corporations, accounting firms, and regulatory bodies are debating the design of new ...Course 2081 - U.S. GAAP Technical Update - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Foreign Account Tax Compliance Act (FATCA) – An Update for Industry ProfessionalsThe U.S. government’s determination to deter tax evasion on offshore assets and boost general taxpayer morale is reflected in ...Course 1740 - IFRS Overview for Banks and Other Financial Institutions - MiamiMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 3210 - International Public Sector Accounting Standards (IPSAS) - Accrual Basis - GenevaMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1209 - IFRS for Derivatives and Hedging - London Members of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1082 - IFRS Technical Update - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1025 - Major IFRS and U.S. GAAP Differences - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1209 - IFRS for Derivatives and Hedging - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1035 - IFRS Basics with US GAAP Comparison - Los AngelesMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1700 - IFRS for Utility Companies - Calgary Members of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 4200 - Detecting and Investigating Financial Statement Fraud - GenevaMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1605 - IFRS for the Oil & Gas Sector - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1600 - Oil & Gas Accounting Fundamentals - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1605 - IFRS for the Oil & Gas Sector - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...The Private Sector Task Force of Regulated Professions and Industries Letter to the G-20 to Provide an Update on Its 2011 Report on Regulatory Convergence in Financial Professions and IndustriesCourse 1082 - IFRS Technical Update - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1015 - IFRS Fundamentals with U.S. GAAP Comparison - Las VegasMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1016 - IFRS Fundamentals with Nigerian GAAP Comparison - AbujaMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1248 - IFRS Business Combinations (M&A) and Consolidations - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1570 - IFRS Implementation for United States Corporations - Las VegasMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...CFA Institute Comment Letter to FASB and IASB on Investment Companies and Investment EntitiesCFA Institute Comment Letter on Investment Property Entities Pension Finance: Putting the Risks and Costs of Defined Benefit Plans Back Under Your Control (a review) M. Barton Waring has succeeded in creating one of the definitive works on the structure and management of defined benefit plans. ..."A Much Higher Cause" Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), discusses the rescue of the Nigerian banking system, the ...The Impact of Basel III on Financial MarketsWill a combination of structural flaws and illogical mathematically inconsistent rules make matters worse?The Real and Financial Implications of Corporate Hedging By using hedges to reduce their interest rate and foreign exchange exposures, corporations reduce the risks inherent in ...Earnings Management and the Post-Earnings Announcement Drift The authors test earnings management as a likely determinant of the delayed market response to earnings news. The delay anomaly ...Does Fair Value Reporting Affect Risk Management? International Survey EvidenceRisk management can enhance company value by reducing the cost of financialdistress, allowing better planning and funding of ...Banks’ Net Interest Margin in the 2000s: A Macro-Accounting International PerspectiveA higher net interest margin (NIM), the spread between a bank’s borrowingand lending activities, is associated with inefficiency ...Are Incentive Contracts Rigged by Powerful CEOs?The authors build an equilibrium model to examine the relationship between CEOpower and incentive contract rigging. They find ...PCAOB Concept Release on Requiring the Engagement Partner to Sign the Audit ReportUnderstanding the New U.S. GAAP & IFRS Proposals on Revenue Recognition Why Should Investors Listen to this Webcast? Revenue is a key driver in analyzing investment performance and making investing ...Course 1000e - IFRS Immersion WorkshopThis 80-day IFRS immersion course (9 January - 28 March 2012) focuses on all significant IFRS requirements, with detailed ...Key Findings from Financial Instruments Risk Disclosures ReportCFA Institute has issued a report on financial instruments risk disclosures made under IFRS. This video highlights key findings ...CFA Institute Comment Letter on Investment Property Entities and Investment Companies Exposure DraftsComment Letter to IASB on IFRS Agenda ConsultationCFA Institute Comment Letter on International Accounting Standards Board’s Exposure Draft, Mandatory Effective Date of IFRS 9Issue Brief on Report Calling for Enhancement of Existing Financial Instruments Risk Disclosures CFA Institute has undertaken a study regarding the quality of financial instruments risk disclosures. The study provides a ...Setting the IASB's Agenda for the Next Decade: Investor Update and Input Opportunity What Is Discussed? For the first time since it was formed in 2001, the International Accounting Standards Board (IASB) consulted ...Short Arbitrage, Return Asymmetry, and the Accrual Anomaly Previous research has found a negative correlation between high accruals and future stock returns: the accrual anomaly. The ...Commentary: Financial Reporting and Financial Crises: The Case for Measuring Financial Instruments at Fair Value in the Financial Statements The author offers his views on why he supports the Financial Accounting Standards Board’s proposal that financial instruments be ...What a Corporate Tax Cut Might MeanAn overview of the likely effect on U.S. corporate financial statements of a lowering of the corporate tax rate. Power from the PeopleThis article discusses state of the art financial performance measures that measure the returns made by human effort. Insider Trading and Option Grant Timing in Response to Fire Sales (and Purchases) of Stocks by Mutual Funds When extreme capital flows force mutual funds to enter or exit positions in equities independent of fundamental developments, ...Accountancy: Ledger Domain Following the financial crisis of 2007–2008, accountants and banking regulators realized the inadequacy of requiring financial ...User Perspectives on Financial Instrument Risk Disclosures Under International Financial Reporting Standards: Volume 1CFA Institute has undertaken a study regarding the quality of financial instruments risk disclosures. The study provides a user's ...Comment Letter to International Auditing and Assurance Standards Board's Consultation Paper: Enhancing the Value of the Auditor Reporting.Course 1030e - IFRS BasicsThis 20-day e-learning course is an introduction to key technical issues involved in understanding and applying IFRSs. The next ...Comment Letter to Public Company Accounting Oversight Board on Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial StatementsThe Current State of Accounting and Reporting for Financial InstrumentsThis collection of slides from a 20 September 2011 CFA Institute webinar presents important reference material describing key ...The Current State of Accounting and Reporting for Financial InstrumentsWhy Should Investors Care? The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) ...International Financial Reporting Standards: To Be or Not to Be?“When evaluating approaches to incorporating IFRS into the U.S. financial reporting regime—or reporting regime in any country—it ...Towards Integrated Reporting: Communicating Value in the 21st CenturyIntegrated reporting is designed to enhance and consolidate existing reporting practices and to move towards a reporting ...Hidden Debt: From Enron’s Commodity Prepays to Lehman’s Repo 105sEnron Corporation’s commodity prepays and Lehman Brothers’ Repo 105s are recent examples of hidden debt intended to improve the ...Comment Letter to Securities & Exchange Commission on Staff Paper, Exploring a Possible Method of IncorporationShareholders’ Say on Pay: Does It Create Value?Since 2003, the U.S. SEC has required shareholder approval only of equity-based compensation. In 2007, the U.S. House of ...Pricing-to-Market and the Failure of Absolute PPPThe law of one price for traded goods and absolute purchasing power parity do not explain price differences for the same goods ...A Matter of TrustExploring regulatory call risk in trust preferred securities.SEC’s Release on Incorporating IFRS into the U.S. Financial Reporting System: Investor ConsiderationsCFA Institute is pleased to offer this timely webinar to update members and other interested investors on the contents of the ...Comment Letter to FASB on Testing for Goodwill ImpairmentHow Are Asian Financial Institutions Impacted by Changing Accounting and Regulatory Regimes? (Take 15 Series) Yin Toa Lee, CFA, reviews the new global regulatory initiatives and changing accounting standards and their business impacts on ...Asian Financial Institutions under the New Accounting RegimeYin Toa Lee, CFA, provides an overview of the various recent accounting standards changes from the FASB and IASB, as well as the ...A New Framework for Evaluating Design and Governance of a Pension SystemDavid C. Villa, CFA, explains why there needs to be a new framework for discussion of retirement savings and compares the costs ...Assessing the Impact of Accounting and Tax Changes on Corporate Earnings and Management BehaviorThe Financial Accounting Standards Board and International Accounting Standards Board are planning to complete a number of major ...Comment Letter to SEC on Proposed Rule for Listing Standards for Compensation CommitteesComment Letter to IASB and FASB on Balance Sheet OffsettingComment Letter to IASB and FASB on ImpairmentMethods of Valuation: Myths vs. RealityThe author surveys actively practicing financial analysts about their use of enterprise value to earnings before interest, taxes, ...When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10-KsThe authors examine 10-Ks from 1994 through 2008 for textual tone by counting words that are generally considered negative. They ...The Effect of Mandatory IFRS Adoption on Financial Analysts’ Information EnvironmentIn 2005, more than 7,000 EU-listed companies in 27 member countries were mandated to adopt International Financial Reporting ...Cooking the Books: Recipes and Costs of Falsified Financial Statements in ChinaThe authors examine companies in China that issued financial restatements. They find that restatements are more common when the ...Swindlers: Cons & Cheats and How to Protect Your Investments from Them (a review)The authors argue that the good intentions behind the International Financial Reporting Standards can be easily subverted through ...Comment Letter to IASB and FASB on Hedge AccountingGeopolitical Risks and Trends (Take 15 Series)Kevin Kajiwara discusses the global investment implications of current geopolitical trends and risks. The Take 15 Series is a ...Comment Letter on the IFRS Foundation Status of Trustees Strategy ReviewLoan StructuringThis course will introduce you to the elements of structuring a loan from both the borrower's and the lender's point of view. You ...Making Compensation Disclosure PayThe new “CD&A Template” is designed to make compensation disclosures clearer and more relevant.Proposed GASB Rules Show Why Only Market Valuation Fully Captures Public Pension Liabilities The Governmental Accounting Standards Board has released preliminary views on how public sector pension plans should value ...Comment Letter on IASB and FASB on Effective Dates and Transition MethodsFree Cash Flow and the Cost of Equity Capital (Take 15 Series) Kenneth S. Hackel, CFA, author of the book Security Valuation and Risk Analysis, challenges traditional thinking on important ...Funds Begin to Move Risk to Center StageFollowing the financial crisis, many pension funds have been turning more attention to risk management than they have ...A Cautionary Note about Robert Shiller’s CAPEThe author evaluates why the cyclically adjusted price-to-earnings ratio (CAPE)may be biased, including changes in the ...Good Investment Fund Limited: Equity InstrumentsThis publication contains an illustrative set of financial statements of "Good Investment Fund Limited" for the year ...Good Investment Fund Limited: Financial LiabilitiesThis publication contains an illustrative set of financial statements of "Good Investment Fund Limited" for the year ...The Impact of Solvency II on Asset ManagersThis brief paper looks at how the European Union's Solvency II regulations might potentially impact asset managers. Comment Letter to IASB and FASB on LeasesComment Letter to U.S. SEC on SOX 404(b) Compliance Study Required by Dodd-Frank ActFinancial Shenanigans: Detecting Accounting Gimmicks That Destroy Investments (corrected November 2010) Good companies as well as bad can turn to financial shenanigans if management sets the wrong example. Most companies leave ...Relative Valuation: Improving the Analysis and Use of MultiplesAswath Damodaran presents an approach for analyzing and using multiples (e.g., price-to-earnings and enterprise-value-to-EBITDA ...Convergence of Accounting Standards (Take 15 Series)The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...The Analytical Implications of Accounting ConvergenceKarl Debenham explains the upcoming convergence of accounting standards and the effects of convergence on analysts, investors, ...Comment Letter to U.S. SEC on Investor Readiness for U.S. Adoption of IFRSComment Letter to IASB and FASB on Revenue RecognitionComment Letter on Presentation of Items of Other Comprehensive IncomeComment Letter to the Financial Accounting Standards Board on Accounting for Financial InstrumentsComment Letter to the European Commission Regarding Green Paper on Corporate Governance in Financial InstitutionsDisclosing Environmental RisksBy making the financial impact of environmental risks tangible, the BP disaster may accelerate disclosure trends.User Perceptions Regarding the Independent Auditor’s Report The results of a recent CFA Institute survey [PDF] clearly indicate that the audit report is seen by investors as boilerplate. The Road to Convergence“We are approaching a critical juncture in the path to a single set of high-quality accounting standards.”Comment Letter to the International Accounting Standards Board on Discussion Paper, Extractive ActivitiesCritical Crossroads: Convergence Efforts Mark Historic Time in Financial ReportingIn what many are calling a critical juncture in global accounting standards setting, the next year and a half could bring a tidal ...FASB's Financial Instruments Exposure Draft and the CFA Institute Position on Fair Value Accounting CFA Institute is pleased to offer this timely webcast, which includes an update on the recently issued FASB Financial ...Comment Letter to the IASB on Financial Instruments: Amortized Cost and ImpairmentMeasurement of Liabilities under IFRSThis Issue Brief provides perspectives on the International Accounting Standards Board’s recent proposal on the measurement of ...Comment Letter to the International Accounting Standards Board on Measurement of Liabilities under IFRSBenjamin Graham: Building a Profession (Take 15 Series)The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...Letter to U.S. Senate Opposing Small Company Exemption from SOX 404 (b)Identifying Accounting Shenanigans (Take 15 Series)In this episode, Howard Schilit reviews a few cases of accounting fraud and discusses techniques on how to identify accounting ...Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial ReportsIn this webcast, Howard Schilit discusses seven earnings manipulation shenanigans and points to specific examples of how ...Equity Return Performance from a Prediction Model of Meeting or Missing Analysts’ Forecasts The author proposes a model that captures the ability and incentives of managers to meet or exceed analyst forecasts along with ...What Analysts Should Know about FAS No. 141R and FAS No. 160 FAS No. 141R, “Business Combinations,” and FAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements,” became ...Spotlight on IFRS Initial impressions of the SEC’s IFRS Work Plan Did Fair-Value Accounting Contribute to the Financial Crisis? The authors examine whether fair value accounting contributed to the severity of the 2008 financial crisis and the demise of ...Member Feedback on Recent IFRS ChangesAn appetite exists for greater application of fair value measurement toward financial instruments than is currently allowed.No One Would Listen: A True Financial ThrillerNo One Would Listen is the first-hand account of how Harry Markopolos and his fraud investigation team cracked Bernie Madoff's ...Financial Analysis—How to Spot Red FlagsSome companies thrive. Some companies struggle. Many companies are under pressure to announce increased earnings and improved ...EVA: The Bubble Years, Meltdown and Beyond The authors examine the information content of economic value added (EVA) to determine its value in portfolio construction and ...Market Timing with Aggregate Accruals The authors consider whether aggregate accruals can be used as a market-timing (MT) strategy. Their hypothesis is that the level ...Is It Fair to Blame Fair Value Accounting for the Financial Crisis? Many blame the difficulties arising from the credit crisis on fair value and mark-to-market accounting and have called for ...Financial Reporting Standards Ch. 3, International Financial Statement Analysis, Thomas R. Robinson, CFA, Hennie van Greuning, CFA, Elaine Henry, CFA, and ...Evaluating Financial Reporting Quality Ch. 17, International Financial Statement Analysis, Scott Richardson, Irem Tuna, (CFA Institute, 2008) Of Candor and Conflicts: What Were We Thinking?This is a chapter in the Research Foundation book Insights into the Global Financial Crisis. The Mark-to-Market Controversy and the Valuation of Financial InstitutionsThis is a chapter in the Research Foundation book Insights into the Global Financial Crisis. Comment Letter to IASC Foundation Regarding Constitution Review: Proposals for Enhanced Public AccountabilityResponse to CESR's Call for Evidence on the Use of Standard Reporting Format for Financial ReportingPost-Crisis Reform and Fair Value Accounting This is a short video from Harvard Business on YouTube that deals with the issue of fair value accounting in the U.S. context. Financial Instrument Accounting: IFRS after the CrisisThe financial crisis has sharpened focus on accounting treatment of financial instruments. The accounting approach can influence ...Cash Is King The direct cash flow method can increase transparency. Beyond Accounting Disclosure of extra-financial information is only the first step. Market and Political/Regulatory Perspectives on the Recent Accounting Scandals The author examines, from both a market perspective and the perspective of the political/regulatory process, the events ...Comment Letter to IASB on Credit Risk in Liability Measurement XBRL: A GuideCFA Institute Centre publishes XBRL guide.Look before You LeapA brief guide to hot issues in 2008 annual reports.The Cost to Firms of Cooking the BooksBetween 1978 and 2002, companies found guilty of financial misrepresentation as a result of a U.S. SEC enforcement ...Do Investors Value Smooth Performance? Earnings smoothing arises from management’s use of accruals to provide a desirable flow of earnings that will result ...Mandatory IFRS Reporting around the World: Early Evidence on the Economic ConsequencesDuring the last few years, International Financial Reporting Standards (IFRS) have been either required or adopted by ...Solutions for the Pension Crisis In this webcast, Ronald J. Ryan, CFA, discusses the following: Developing an appropriate benchmark and core portfolio based ...The Municipal Industry in an Era of Illiquidity, Volatility, Ratings Ambiguity, and Market ManipulationIn this podcast, Thomas G. Doe discusses the following: What impact has the credit crisis had on the primary and secondary ...Fair Value Accounting: Where Are We and Where Are We Going?In this podcast, Marc A. Siegel discusses the following: History of the most contentious current issue in financial ...Alternative Energy Sources In this webcast, Pearce W. Hammond, Jr., CFA, discusses the following: How will alternative energy sources grow in ...The Oil Service Sector: The New Big Oil? In this webcast, Byron K. Pope, CFA, discusses the following: What role can the service sector play in a world where ...eXtensible Business Reporting Language: A Guide for InvestorsAnalysts, portfolio managers, and investors currently navigate a winding and uneven path in order to collect the ...Fair FightDoes market turmoil justify the suspension of fair value accounting rules?Of Candor and Conflicts: What Were We Thinking?Financial scandals occur when executives fail to recognize the ethical dilemmas that they put themselves and their ...Forensic FinanceThe author presents four cases that demonstrate the interplay of academic researchers, journalists, regulators, and law ...Shorting Companies That Restate Previously Issued Financial StatementsThe authors study whether stock prices decline when companies announce that their previously issued financial ...Accruals, Capital Investments, and Stock ReturnsThe evidence from this study shows that the “accruals anomaly” and the “capital investment anomaly” are distinct, even ...The Accruals Anomaly and Company SizeResearch has shown that a trading strategy based on publicly available accounting accrual information can earn abnormal ...In the BalanceWhy are some European institutions working to undermine progress toward global accounting standards?Global Convergence of Accounting Standards—Building Infrastructure for the World's Capital Markets In this webcast, Stephen Cooper discusses the following: What can investors expect to gain from the global adoption of ...After the Credit Crisis: Transparency and Other Issues in Financial Statement AnalysisIn this podcast, Jeremy Perler, CFA, discusses the following: Striving for continuous improvement in investment research: ...The EVA Framework and the Current Economy (Take 15 Series) The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...First Come First DisservedThe authors investigate market reactions to early versus late earnings announcements of companies in similar ...Executive Option Exercises and Financial MisreportingAlthough executive stock options are intended to be beneficial for shareholder value, they may motivate managers to ...Do Core and Non-Core Cash Flows from Operations Persist Differentially in Predicting Future Cash Flows?The authors examine whether disaggregating cash flow data into component cash flows improves cash flow predictability. ...The Persistence and Pricing of the Cash Component of EarningsThe authors investigate the persistence of three cash components of earnings and find that accruals are less persistent ...Quarterly Accruals or Cash Flows in Portfolio Construction?Using quarterly and rolling four-quarter data, this study explores the incremental roles of accruals and net operating ...International Financial Statement Analysis The process of financial statement analysis allows you to gain important insights into the true financial condition of a ...Accruals, Capital Investments, and Stock Returns The evidence from this study shows that the “accruals anomaly” and the “capital investment anomaly” are distinct, even though ...The Accruals Anomaly and Company Size Research has shown that a trading strategy based on publicly available accounting accrual information can earn abnormal returns ...Long-Term Price Effect of S&P 500 Addition and Earnings Quality When a company is added to the S&P 500 Index, it receives a positive price response. Several explanations for this effect ...Employee Stock Option Valuation with an Early Exercise Boundary Many companies are recognizing that the Black–Scholes formula is inappropriate for employee stock options (ESOs) and are moving ...The State of RestatementsA study of financial restatements yields surprising findings.Disclosure from the User’s PerspectiveChristopher Cox discusses issues related to interactive data and the regulatory agenda. Corporate Governance Post-Enron: Effective Reforms, or Closing the Stable Door?The authors study the collapse of Enron to provide insight on whether reforms in internal and external governance would ...Stock Repurchases and the EPS Enhancement Fallacy A common belief among practitioners and academics is that the increased EPS associated with a stock repurchase creates value for ...Analysis of the Dot-Com Bubble of the 1990sThis study examines the relation between market valuation and traditional accounting information before, during, and after the ...Quarterly Accruals or Cash Flows in Portfolio Construction? Using quarterly and rolling four-quarter data, this study explores the incremental roles of accruals and net operating cash ...The Fairness DoctrineFair value improves financial reporting and benefits investors.Lost in the MazeHas executive compensation become a trap for investors?It Pays to Disclose: Bridging the Information Gap in Executive-Compensation Disclosures in Asia (corrected March 2008)While developed markets in the West have seen significant changes in executive compensation regulations and ...The Dynamics of Earnings Forecast ManagementThe authors analyze how companies manage earnings—particularly, “talking down” earnings forecasts immediately prior to ...How Disaggregation Enhances the Credibility of Management Earnings ForecastsEarnings forecasts can be a valuable tool for company managers who want to relay performance expectations to the market ...The Adjusted Earnings YieldThe earnings yield, determined by the ratio of reported earnings to price, is frequently used to predict real return. ...The Lifeblood of Capital MarketsImproving the quality of financial reporting should be a priority.Conversation with a Money Master: Free Cash Flow and Quality of EarningsIn this webcast, Robert A. Olstein and Fred H. Speece, Jr., CFA, discuss the following: Valuation and inferential ...Applying Modern Risk Management to Equity and Credit AnalysisTraditional conventions of accounting and actuarial science distort the valuation of capital risk in corporations with ...The Compensation of Senior Executives at Listed Companies: A Manual for InvestorsIn the financial world, concern about executive compensation typically is limited to whether or not rewards directly ...XBRL: Catching the WaveEfforts to further integrate eXtensible Business Reporting Language (XBRL) and financial reporting standards are progressing ...The Book-to-Price Effect in Stock Returns: Accounting for LeverageThe book-to-price ratio (B/P) by itself is positively related to subsequent stock returns, and two subcomponents of B/P, ...Measuring Free Cash Flows for Equity Valuation: Pitfalls and Possible SolutionsThe authors describe problems with common cash flow metrics and provide advice on how to calculate cash flow metrics that ...The Adjusted Earnings YieldThe earnings yield, determined by the ratio of reported earnings to price, is frequently used to predict real return. ...Corporate Pension Funding and Credit SpreadsThis study empirically tested whether pension information derived from accounting disclosures is priced in corporate bond ...Reliability, Comparability, and ConsistencyLack of awareness about XBRL provides an opportunity for education.FASB’s Quick Fix for Pension Accounting Is Only First StepPrevious accounting standards allowed companies with underfunded pension plans to accumulate pension liabilities off the balance ...On the Use (and Abuse) of Stock Option GrantsRecently, a significant number of companies have come under public and regulatory scrutiny for backdating stock option grants. ...X Marks the SpotThe CFA Institute Centre is weighing in on XBRL.Fallout? What Fallout?The backlash from the stock options backdating scandal is almost non-existent.A Comprehensive Business Reporting Model: Financial Reporting for InvestorsThe CFA Institute Centre for Financial Market Integrity has published a new financial reporting model that ...Beginning to Overhaul the Pension Accounting RulesThe Financial Accounting Standards Board has been busy revising the rules for pension accounting. These rule changes ...Quality Information = More Efficient MarketsCorporate Disclosure Policy Council strives to improve financial reporting.Fair Value Financial Reporting: An Investor Perspective, Part 2How can investors more efficiently and effectively use the mixed attribute information currently available to them?An Apples-to-Apples ComparisonCFA Institute Centre for Financial Market Integrity introduces template for reporting quarterly earnings.Into the BreachCan securities analysts bridge the gap between earnings management and financial reality?Accounting and Valuation: How Helpful Are Recent Accounting Rule Changes?On the Use (and Abuse) of Stock Option GrantsRecently, a significant number of companies have come under public and regulatory scrutiny for backdating stock option grants. ...China Corporate Governance SurveyFrom August to September 2006, the CFA Institute Centre conducted a study of corporate governance practices ...Capping It OffShould auditors be protected by liability caps?Interest Rate Swaps: Accounting vs. EconomicsWith interest rate swaps being the most widely used of all financial derivative contracts, financial analysts and engineers ...FASB’s Quick Fix for Pension Accounting Is Only First StepHidden liabilities, understated expenses, and discretionary management assumptions make pension accounting controversial. ...Accounting Restatements: Are They Always Bad News for Investors?The authors examine the relationship between accounting restatements and their impact on equity returns. The literature has ...Value Destruction and Financial Reporting DecisionsThe comprehensive survey reported here allowed analysis of how senior U.S. financial executives make decisions related to ...Fair Value Financial ReportingAn investor's perspective.Transparent, Translucent, or Transient: Where Have IFRS Left Us?The business of finance and investment is international, and accounting standards should be too. Many people believe that a ...Value Destruction and Financial Reporting DecisionsThe comprehensive survey reported here allowed analysis of how senior U.S. financial executives make decisions related to ...Earnings Quality Analysis and Equity ValuationFor years, a widely held belief was that markets are efficient and that fundamental analysis is futile. But ...Bad TimingNew rules for disclosure of stock options.The X-FactorThis article addresses the following key points: • Proponents believe eXtensible Business Reporting Language will revolutionize ...An IFRS 2 and FASB 123 (R) Compatible Model for the Valuation of Employee Stock OptionsAlthough accounting standards boards have recently issued standards requiring companies to recognize employee stock options as an ...When Does R&D Expense Distort Profitability Estimates?The authors develop a model that determines when return on assets (ROA) is more likely to be distorted by the immediate expensing ...Cash Flows, Accruals, and Future ReturnsThis study explored the “accrual anomaly.” The study is unique because it analyzed originally reported—unrestated—quarterly data ...Do We Accept Accrual Profits at Our Peril?The study described documented evidence that informed traders use their proprietary information on accrual quality to trade ...Terms of EngagementCFA Centre joins efforts to reverse overemphasis on short-term performance.A Proposed Business Reporting ModelThe current business reporting model is in need of repair. The CFA Centre for Financial Market Integrity is ...Analyzing the Impact of Retirement LiabilitiesRetirement benefits represent a tremendous but obscured component of corporations’ finances. The current ...A Fair QuestionThis article addresses the following key points: • Global accounting standard setters are increasingly embracing the use of fair ...Earnings Predictability, Bond Ratings, and Bond YieldsAlthough long-term earnings flows of companies may not be completely predictable, the authors theorize that expectations ...The Ability of Earnings to Predict Future Operating Cash Flows Has Been Increasing—Not DecreasingPrevious research found that the explanatory power of earnings for concurrent stock prices has decreased over time. However, the ...Tax Rates and Stock Returns: An Empirical Analysis of the Information Content of Corporate Tax RatesThe authors explore the information content of corporate tax rates by analyzing the effective tax rates of S&P 500 Index ...The Degradation of Reported Corporate ProfitsThe author argues that the dual nature of corporate profit reporting has given managers the ability to mischaracterize tax ...Using Investor Relations to Maximize Equity Valuation (a review)This short, easy-to-read volume describes aspects of the investor relations function; comments about methods to attract different ...How to Read a 10-Q Like an Investment Professional: Sequel to Wal-Mart Analysis Webcast CFA Institute—the non-profit association that administers the Chartered Financial Analyst® educational program for investment ...Profits You Can Trust (a review)Two accounting professors and an editor at the Harvard Business Review have produced a useful set of guidelines and advice for ...The Future of Business ReportingThis article addresses the following key points: The CFA Centre for Financial Market Integrity has proposed fundamental reform of ...Darning SoxShould the Sarbanes-Oxley Act be mended or ended? Hidden Financial Risk: Understanding Off-Balance Sheet Accounting (a review)This book provides an excellent short course in understanding and revealing financial reporting trickery, with particular ...The Association between Outside Directors, Institutional Investors and the Properties of Management Earnings ForecastsThis paper hypothesizes a positive relationship between earnings forecasts and the percentage of outside directors as well as the ...Informational Effects of Regulation FD:Regulation Fair Disclosure (Reg FD) provides bond analysts at rating agencies with an information advantage over equity analysts. ...Beyond Financial Reporting—The author outlines an integrated approach to corporate disclosure, supplementing required reporting with information and ...Valuing Routine Intangible AssetsThe author considers valuation techniques for “routine” intangible assets, or those that do not increase firm value but, rather, ...Does Allowing Alternative Hedge Designations Affect Financial Statement Comparability?Statement of Financial Accounting Standards (SFAS) No. 133 was issued to help provide more consistent guidance for financial ...Choosing the Right Valuation ApproachBefore beginning any analysis, the analyst should define the claim and level of value, the valuation date, ...An Analyst's Perspective on Financial ReportingAnalyzing financial statements is difficult because (1) the information is spread across three separate ...The Short Perspective in Today's MarketsWhen analyzing a company, examining the financials—the numbers—is clearly important. But it is not the only ...The Cost of Employee Stock OptionsExpensing stock options is an issue that has been hotly debated for more than 20 years. But it looks like its ...Just Another Gray Sheep?This article addresses the following key points: Holding-company and pyramidal ownership structures make related-party ...The Economics of Short-Term Performance ObsessionIn theory, discounted cash flows (DCFs) set prices in well-functioning capital markets. In practice, investment managers attach ...Disclosure and the Loan Spread on Private DebtCompanies that consistently make detailed, timely, and informative disclosures face lower costs of public equity and debt ...Interpretation and Use of Auditor Fee DisclosuresPublicly available fee disclosures have been used by investors and regulators to assess various matters, including the quality of ...What Investors Need to Know about the Transition to IFRSKimberley Crook, a senior project manager on the staff of the International Accounting Standards Board, outlines present and ...IAS 39—What Is Fair, What Is Value?The introduction of International Accounting Standard 39 Financial Instruments: Recognition and Measurement is arguably the ...Business Combinations, Acquisitions, and GoodwillThe introduction of International Financial Reporting Standard 3 Business Combinations in early 2004 has meant greater ...The Impact of Pension Accounting on Financial Statements and DisclosuresInternational Accounting Standard (IAS) 19 Employee Benefits is a big step forward in pension accounting. In addition to ...EU Financial Reporting: Recent DevelopmentsWith the increased globalization of markets comes the desire to have common accounting standards. In pursuit of that goal, the ...Bullish on the BearMost investment professionals in Russia are optimistic about the investment climate in Russia, but the same ...Scalawags, Scoundrels, and Self-Dealing: Business as Usual in the 21st Century?This article addresses the following key points: Forty percent of the companies in the S&P 500 have business ...Around the World in 80 Ways?This article addresses the following key points: Along with the European Union, about 65 other countries worldwide are ...Convertible Bonds: How Much Equity, How Much Debt?Financial analysts need accurate estimates of debt, equity, leverage, and EPS. The method proposed here, based on the probability ...Economic Sources of Gain in Stock RepurchasesThe authors use more than 5,000 open-market repurchases from 1980 to 1996 to evaluate three economic motives ...Employee Stock Options, Corporate Taxes, and Debt PolicyThe authors study the effect of the tax deductions that companies obtain when employees exercise stock ...Security Analyst Independence Many investors perceive, based primarily on anecdotal evidence, that analysts do not act independently. What the authors of this ...Employee Stock Options and Equity Valuation Increasingly, companies are turning to employee stock options to meet the challenge of aligning the interests of employees and ...Earnings Quality Understanding the quality of earnings is an essential part of processing and interpreting information. A high-quality earnings ...U.S. UpdateThis section provides updates on the Financial Accounting Standards Board's new standard for acquisitions of certain financial ...International Financial ReportingThis section summarizes the efforts of the International Accounting Standards Board and the Public Sector Committee of the ...Sarbanes–Oxley Act of 2002: Sweeping Legislation Changes Corporate and Accounting LandscapeThe Sarbanes–Oxley Act, signed into law on 30 July 2002, includes a wide variety of reform measures intended to address corporate ...Financial Reporting: U.S. UpdateThis section reviews the Financial Accounting Policy Committee's (FAPC's) deliberations on several rules proposed by the U.S. ...Financial Reporting: Other Countries UpdateThis section examines the European Financial Reporting Advisory Group's (EFRAG's) recommendation to approve all International ...Financial Reporting: International Financial ReportingThis section outlines the International Accounting Standards Board's new work program and the Board's two proposals that have ...Financial Reporting: U.S. UpdateThis section contains information on the Financial Accounting Foundation's changes to the Financial Accounting Standards Board's ...Financial Reporting: Other Countries UpdateThe AIMR Canadian Advocacy Committee met with the Accounting Standard Board of the Canadian Institute of Chartered Accountants to ...Financial Reporting: International Financial ReportingThis section includes updates on the International Accounting Standards Board's exposure draft on improvements to 12 of its 34 ...GAAP 2001:Benchmarking National Accounting Rules against International Accounting Standards GAAP 2001 provides regulators and users of financial information with summaries of areas in which the national accounting ...Financial Reporting:U.S. UpdateThe trustees of the Financial Accounting Foundation have proposed some changes to the Financial Accounting Standards Board in the ...Financial Reporting:Other Countries UpdateThe Accounting Standards Board of the Canadian Institute for Chartered Accountants (CICA) released a draft of an accounting ...Financial Reporting:U.S. UpdateThe U.S. SEC recently issued a statement of its views regarding reporting management's discussion and analysis (MD&A) in ...Financial Reporting:Other Countries UpdateThe Canadian Institute for Chartered Accountants (CICA) recently issued for public comment draft guidelines for management's ...Financial Reporting:U.S. UpdateIn August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 144, Accounting ...Financial Reporting:Other Countries UpdateThe Other Countries Update addresses such topics as the announcement by Canada's Accounting Standards Oversight Council and ...AIMR's Stock Option SurveyA recent AIMR survey, sent to more than 18,000 members in September 2001, measured the views of AIMR members regarding ...Valuation of Brands and Intellectual CapitalThe author considers several methodologies used for valuing brands and intellectual capital, including those of Interbrand, ...Financial Warnings: Detecting Earning Surprises, Avoiding Business Troubles, Implementing Corrective StrategiesThis book discusses earnings surprises by corporations and the financial statement information that analysts and investors need ...The Effect of Analyst Coverage on the Informativeness of Income SmoothingCompanies that have an analyst following seem to practice income smoothing, which may convey private ...The Market Value of Public-Sector Pension BenefitsAmerican Enterprise Institute for Public Policy Research: States report that their public-employee pensions are underfunded by a ...CD&A Template Improves Compensation Disclosure The Compensation Disclosure and Analysis Template was developed by a CFA Institute-led working group of issuers, investors, and ...Issue Brief: Compensation Disclosure and Analysis TemplateThis issue brief provides guidance to help issuers tell a story about their compensation policies, practices, and decisions, and ...Getting Ahead of the Curve When Valuing Level 3 Investments: Valuing and Auditing Illiquid Investments In this one-hour webcast session, John Czapla, and Rob Barnett from Valuation Research Corporation (VRC), along with Michael ...Benjamin Graham: Building a Profession (Take 15 Series Transcript)The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...Building a Financial Model by The Marquee GroupThis intensive one-day course focuses on building an interactive and clearly-designed financial model of a company that adheres ...2012 Annual Pension Conference: Keeping Up With the Rapid Change in PensionsFor an industry that has been around for quite some time, pensions continue to experience rapid change on many fronts. The shift ...Course 2003 - U.S. GAAP Essentials - London Members of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1010 - IFRS Fundamentals - Abu DhabiMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1000 - IFRS Immersion Workshop - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 2081 - U.S. GAAP Technical Update - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1740 - IFRS Overview for Banks and Other Financial Institutions - MiamiMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 3210 - International Public Sector Accounting Standards (IPSAS) - Accrual Basis - GenevaMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1209 - IFRS for Derivatives and Hedging - London Members of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1082 - IFRS Technical Update - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1025 - Major IFRS and U.S. GAAP Differences - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1209 - IFRS for Derivatives and Hedging - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1035 - IFRS Basics with US GAAP Comparison - Los AngelesMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1700 - IFRS for Utility Companies - Calgary Members of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 4200 - Detecting and Investigating Financial Statement Fraud - GenevaMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1605 - IFRS for the Oil & Gas Sector - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1600 - Oil & Gas Accounting Fundamentals - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1605 - IFRS for the Oil & Gas Sector - LondonMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1082 - IFRS Technical Update - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1015 - IFRS Fundamentals with U.S. GAAP Comparison - Las VegasMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1016 - IFRS Fundamentals with Nigerian GAAP Comparison - AbujaMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1248 - IFRS Business Combinations (M&A) and Consolidations - CalgaryMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Course 1570 - IFRS Implementation for United States Corporations - Las VegasMembers of CFA Institute receive a 20% discount off the standard program price by entering code “CFA20” during the registration ...Not So Smart: How Executives Spend Their Company’s CashRecent evidence for S&P 500 Index companies seems to confirm studies that show that companies are bad at ...How the Growth Outliers Do ItThe author asks the questions, How many companies grow revenues by 5% or more each year over a 5- or 10-year ...Income Inequality: Who Exactly Are the 1%?The wealthy in the United States are increasingly employed in finance, are well educated, generally marry ...Does IFRS Stand for InFormation RiSk?In the wake of the recent financial crises, corporations, accounting firms, and regulatory bodies are debating the design of new ...The Private Sector Task Force of Regulated Professions and Industries Letter to the G-20 to Provide an Update on Its 2011 Report on Regulatory Convergence in Financial Professions and IndustriesCFA Institute Comment Letter to FASB and IASB on Investment Companies and Investment EntitiesCFA Institute Comment Letter on Investment Property Entities Pension Finance: Putting the Risks and Costs of Defined Benefit Plans Back Under Your Control (a review) M. Barton Waring has succeeded in creating one of the definitive works on the structure and management of defined benefit plans. ..."A Much Higher Cause" Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), discusses the rescue of the Nigerian banking system, the ...The Impact of Basel III on Financial MarketsWill a combination of structural flaws and illogical mathematically inconsistent rules make matters worse?The Real and Financial Implications of Corporate Hedging By using hedges to reduce their interest rate and foreign exchange exposures, corporations reduce the risks inherent in ...Earnings Management and the Post-Earnings Announcement Drift The authors test earnings management as a likely determinant of the delayed market response to earnings news. The delay anomaly ...Does Fair Value Reporting Affect Risk Management? International Survey EvidenceRisk management can enhance company value by reducing the cost of financialdistress, allowing better planning and funding of ...Banks’ Net Interest Margin in the 2000s: A Macro-Accounting International PerspectiveA higher net interest margin (NIM), the spread between a bank’s borrowingand lending activities, is associated with inefficiency ...Are Incentive Contracts Rigged by Powerful CEOs?The authors build an equilibrium model to examine the relationship between CEOpower and incentive contract rigging. They find ...PCAOB Concept Release on Requiring the Engagement Partner to Sign the Audit ReportCFA Institute Comment Letter on Investment Property Entities and Investment Companies Exposure DraftsComment Letter to IASB on IFRS Agenda ConsultationCFA Institute Comment Letter on International Accounting Standards Board’s Exposure Draft, Mandatory Effective Date of IFRS 9Issue Brief on Report Calling for Enhancement of Existing Financial Instruments Risk Disclosures CFA Institute has undertaken a study regarding the quality of financial instruments risk disclosures. The study provides a ...Short Arbitrage, Return Asymmetry, and the Accrual Anomaly Previous research has found a negative correlation between high accruals and future stock returns: the accrual anomaly. The ...Commentary: Financial Reporting and Financial Crises: The Case for Measuring Financial Instruments at Fair Value in the Financial Statements The author offers his views on why he supports the Financial Accounting Standards Board’s proposal that financial instruments be ...What a Corporate Tax Cut Might MeanAn overview of the likely effect on U.S. corporate financial statements of a lowering of the corporate tax rate. Power from the PeopleThis article discusses state of the art financial performance measures that measure the returns made by human effort. Insider Trading and Option Grant Timing in Response to Fire Sales (and Purchases) of Stocks by Mutual Funds When extreme capital flows force mutual funds to enter or exit positions in equities independent of fundamental developments, ...Accountancy: Ledger Domain Following the financial crisis of 2007–2008, accountants and banking regulators realized the inadequacy of requiring financial ...User Perspectives on Financial Instrument Risk Disclosures Under International Financial Reporting Standards: Volume 1CFA Institute has undertaken a study regarding the quality of financial instruments risk disclosures. The study provides a user's ...Comment Letter to International Auditing and Assurance Standards Board's Consultation Paper: Enhancing the Value of the Auditor Reporting.Comment Letter to Public Company Accounting Oversight Board on Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial StatementsThe Current State of Accounting and Reporting for Financial InstrumentsThis collection of slides from a 20 September 2011 CFA Institute webinar presents important reference material describing key ...International Financial Reporting Standards: To Be or Not to Be?“When evaluating approaches to incorporating IFRS into the U.S. financial reporting regime—or reporting regime in any country—it ...Towards Integrated Reporting: Communicating Value in the 21st CenturyIntegrated reporting is designed to enhance and consolidate existing reporting practices and to move towards a reporting ...Hidden Debt: From Enron’s Commodity Prepays to Lehman’s Repo 105sEnron Corporation’s commodity prepays and Lehman Brothers’ Repo 105s are recent examples of hidden debt intended to improve the ...Comment Letter to Securities & Exchange Commission on Staff Paper, Exploring a Possible Method of IncorporationShareholders’ Say on Pay: Does It Create Value?Since 2003, the U.S. SEC has required shareholder approval only of equity-based compensation. In 2007, the U.S. House of ...Pricing-to-Market and the Failure of Absolute PPPThe law of one price for traded goods and absolute purchasing power parity do not explain price differences for the same goods ...A Matter of TrustExploring regulatory call risk in trust preferred securities.Comment Letter to FASB on Testing for Goodwill ImpairmentAssessing the Impact of Accounting and Tax Changes on Corporate Earnings and Management BehaviorThe Financial Accounting Standards Board and International Accounting Standards Board are planning to complete a number of major ...Comment Letter to SEC on Proposed Rule for Listing Standards for Compensation CommitteesComment Letter to IASB and FASB on Balance Sheet OffsettingComment Letter to IASB and FASB on ImpairmentMethods of Valuation: Myths vs. RealityThe author surveys actively practicing financial analysts about their use of enterprise value to earnings before interest, taxes, ...When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10-KsThe authors examine 10-Ks from 1994 through 2008 for textual tone by counting words that are generally considered negative. They ...The Effect of Mandatory IFRS Adoption on Financial Analysts’ Information EnvironmentIn 2005, more than 7,000 EU-listed companies in 27 member countries were mandated to adopt International Financial Reporting ...Cooking the Books: Recipes and Costs of Falsified Financial Statements in ChinaThe authors examine companies in China that issued financial restatements. They find that restatements are more common when the ...Swindlers: Cons & Cheats and How to Protect Your Investments from Them (a review)The authors argue that the good intentions behind the International Financial Reporting Standards can be easily subverted through ...Comment Letter to IASB and FASB on Hedge AccountingComment Letter on the IFRS Foundation Status of Trustees Strategy ReviewMaking Compensation Disclosure PayThe new “CD&A Template” is designed to make compensation disclosures clearer and more relevant.Proposed GASB Rules Show Why Only Market Valuation Fully Captures Public Pension Liabilities The Governmental Accounting Standards Board has released preliminary views on how public sector pension plans should value ...Comment Letter on IASB and FASB on Effective Dates and Transition MethodsFunds Begin to Move Risk to Center StageFollowing the financial crisis, many pension funds have been turning more attention to risk management than they have ...A Cautionary Note about Robert Shiller’s CAPEThe author evaluates why the cyclically adjusted price-to-earnings ratio (CAPE)may be biased, including changes in the ...Good Investment Fund Limited: Equity InstrumentsThis publication contains an illustrative set of financial statements of "Good Investment Fund Limited" for the year ...Good Investment Fund Limited: Financial LiabilitiesThis publication contains an illustrative set of financial statements of "Good Investment Fund Limited" for the year ...The Impact of Solvency II on Asset ManagersThis brief paper looks at how the European Union's Solvency II regulations might potentially impact asset managers. Comment Letter to IASB and FASB on LeasesComment Letter to U.S. SEC on SOX 404(b) Compliance Study Required by Dodd-Frank ActFinancial Shenanigans: Detecting Accounting Gimmicks That Destroy Investments (corrected November 2010) Good companies as well as bad can turn to financial shenanigans if management sets the wrong example. Most companies leave ...Comment Letter to U.S. SEC on Investor Readiness for U.S. Adoption of IFRSComment Letter to IASB and FASB on Revenue RecognitionComment Letter on Presentation of Items of Other Comprehensive IncomeComment Letter to the Financial Accounting Standards Board on Accounting for Financial InstrumentsComment Letter to the European Commission Regarding Green Paper on Corporate Governance in Financial InstitutionsDisclosing Environmental RisksBy making the financial impact of environmental risks tangible, the BP disaster may accelerate disclosure trends.User Perceptions Regarding the Independent Auditor’s Report The results of a recent CFA Institute survey [PDF] clearly indicate that the audit report is seen by investors as boilerplate. The Road to Convergence“We are approaching a critical juncture in the path to a single set of high-quality accounting standards.”Comment Letter to the International Accounting Standards Board on Discussion Paper, Extractive ActivitiesCritical Crossroads: Convergence Efforts Mark Historic Time in Financial ReportingIn what many are calling a critical juncture in global accounting standards setting, the next year and a half could bring a tidal ...Comment Letter to the IASB on Financial Instruments: Amortized Cost and ImpairmentMeasurement of Liabilities under IFRSThis Issue Brief provides perspectives on the International Accounting Standards Board’s recent proposal on the measurement of ...Comment Letter to the International Accounting Standards Board on Measurement of Liabilities under IFRSLetter to U.S. Senate Opposing Small Company Exemption from SOX 404 (b)Equity Return Performance from a Prediction Model of Meeting or Missing Analysts’ Forecasts The author proposes a model that captures the ability and incentives of managers to meet or exceed analyst forecasts along with ...What Analysts Should Know about FAS No. 141R and FAS No. 160 FAS No. 141R, “Business Combinations,” and FAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements,” became ...Spotlight on IFRS Initial impressions of the SEC’s IFRS Work Plan Did Fair-Value Accounting Contribute to the Financial Crisis? The authors examine whether fair value accounting contributed to the severity of the 2008 financial crisis and the demise of ...Member Feedback on Recent IFRS ChangesAn appetite exists for greater application of fair value measurement toward financial instruments than is currently allowed.No One Would Listen: A True Financial ThrillerNo One Would Listen is the first-hand account of how Harry Markopolos and his fraud investigation team cracked Bernie Madoff's ...EVA: The Bubble Years, Meltdown and Beyond The authors examine the information content of economic value added (EVA) to determine its value in portfolio construction and ...Market Timing with Aggregate Accruals The authors consider whether aggregate accruals can be used as a market-timing (MT) strategy. Their hypothesis is that the level ...Is It Fair to Blame Fair Value Accounting for the Financial Crisis? Many blame the difficulties arising from the credit crisis on fair value and mark-to-market accounting and have called for ...Financial Reporting Standards Ch. 3, International Financial Statement Analysis, Thomas R. Robinson, CFA, Hennie van Greuning, CFA, Elaine Henry, CFA, and ...Evaluating Financial Reporting Quality Ch. 17, International Financial Statement Analysis, Scott Richardson, Irem Tuna, (CFA Institute, 2008) Of Candor and Conflicts: What Were We Thinking?This is a chapter in the Research Foundation book Insights into the Global Financial Crisis. The Mark-to-Market Controversy and the Valuation of Financial InstitutionsThis is a chapter in the Research Foundation book Insights into the Global Financial Crisis. Comment Letter to IASC Foundation Regarding Constitution Review: Proposals for Enhanced Public AccountabilityResponse to CESR's Call for Evidence on the Use of Standard Reporting Format for Financial ReportingCash Is King The direct cash flow method can increase transparency. Beyond Accounting Disclosure of extra-financial information is only the first step. Market and Political/Regulatory Perspectives on the Recent Accounting Scandals The author examines, from both a market perspective and the perspective of the political/regulatory process, the events ...Comment Letter to IASB on Credit Risk in Liability Measurement XBRL: A GuideCFA Institute Centre publishes XBRL guide.Look before You LeapA brief guide to hot issues in 2008 annual reports.The Cost to Firms of Cooking the BooksBetween 1978 and 2002, companies found guilty of financial misrepresentation as a result of a U.S. SEC enforcement ...Do Investors Value Smooth Performance? Earnings smoothing arises from management’s use of accruals to provide a desirable flow of earnings that will result ...Mandatory IFRS Reporting around the World: Early Evidence on the Economic ConsequencesDuring the last few years, International Financial Reporting Standards (IFRS) have been either required or adopted by ...eXtensible Business Reporting Language: A Guide for InvestorsAnalysts, portfolio managers, and investors currently navigate a winding and uneven path in order to collect the ...Fair FightDoes market turmoil justify the suspension of fair value accounting rules?Of Candor and Conflicts: What Were We Thinking?Financial scandals occur when executives fail to recognize the ethical dilemmas that they put themselves and their ...Forensic FinanceThe author presents four cases that demonstrate the interplay of academic researchers, journalists, regulators, and law ...Shorting Companies That Restate Previously Issued Financial StatementsThe authors study whether stock prices decline when companies announce that their previously issued financial ...Accruals, Capital Investments, and Stock ReturnsThe evidence from this study shows that the “accruals anomaly” and the “capital investment anomaly” are distinct, even ...The Accruals Anomaly and Company SizeResearch has shown that a trading strategy based on publicly available accounting accrual information can earn abnormal ...In the BalanceWhy are some European institutions working to undermine progress toward global accounting standards?First Come First DisservedThe authors investigate market reactions to early versus late earnings announcements of companies in similar ...Executive Option Exercises and Financial MisreportingAlthough executive stock options are intended to be beneficial for shareholder value, they may motivate managers to ...Do Core and Non-Core Cash Flows from Operations Persist Differentially in Predicting Future Cash Flows?The authors examine whether disaggregating cash flow data into component cash flows improves cash flow predictability. ...The Persistence and Pricing of the Cash Component of EarningsThe authors investigate the persistence of three cash components of earnings and find that accruals are less persistent ...Quarterly Accruals or Cash Flows in Portfolio Construction?Using quarterly and rolling four-quarter data, this study explores the incremental roles of accruals and net operating ...International Financial Statement Analysis The process of financial statement analysis allows you to gain important insights into the true financial condition of a ...Accruals, Capital Investments, and Stock Returns The evidence from this study shows that the “accruals anomaly” and the “capital investment anomaly” are distinct, even though ...The Accruals Anomaly and Company Size Research has shown that a trading strategy based on publicly available accounting accrual information can earn abnormal returns ...Long-Term Price Effect of S&P 500 Addition and Earnings Quality When a company is added to the S&P 500 Index, it receives a positive price response. Several explanations for this effect ...Employee Stock Option Valuation with an Early Exercise Boundary Many companies are recognizing that the Black–Scholes formula is inappropriate for employee stock options (ESOs) and are moving ...The State of RestatementsA study of financial restatements yields surprising findings.Disclosure from the User’s PerspectiveChristopher Cox discusses issues related to interactive data and the regulatory agenda. Corporate Governance Post-Enron: Effective Reforms, or Closing the Stable Door?The authors study the collapse of Enron to provide insight on whether reforms in internal and external governance would ...Stock Repurchases and the EPS Enhancement Fallacy A common belief among practitioners and academics is that the increased EPS associated with a stock repurchase creates value for ...Analysis of the Dot-Com Bubble of the 1990sThis study examines the relation between market valuation and traditional accounting information before, during, and after the ...Quarterly Accruals or Cash Flows in Portfolio Construction? Using quarterly and rolling four-quarter data, this study explores the incremental roles of accruals and net operating cash ...The Fairness DoctrineFair value improves financial reporting and benefits investors.Lost in the MazeHas executive compensation become a trap for investors?It Pays to Disclose: Bridging the Information Gap in Executive-Compensation Disclosures in Asia (corrected March 2008)While developed markets in the West have seen significant changes in executive compensation regulations and ...The Dynamics of Earnings Forecast ManagementThe authors analyze how companies manage earnings—particularly, “talking down” earnings forecasts immediately prior to ...How Disaggregation Enhances the Credibility of Management Earnings ForecastsEarnings forecasts can be a valuable tool for company managers who want to relay performance expectations to the market ...The Adjusted Earnings YieldThe earnings yield, determined by the ratio of reported earnings to price, is frequently used to predict real return. ...The Lifeblood of Capital MarketsImproving the quality of financial reporting should be a priority.Applying Modern Risk Management to Equity and Credit AnalysisTraditional conventions of accounting and actuarial science distort the valuation of capital risk in corporations with ...The Compensation of Senior Executives at Listed Companies: A Manual for InvestorsIn the financial world, concern about executive compensation typically is limited to whether or not rewards directly ...XBRL: Catching the WaveEfforts to further integrate eXtensible Business Reporting Language (XBRL) and financial reporting standards are progressing ...The Book-to-Price Effect in Stock Returns: Accounting for LeverageThe book-to-price ratio (B/P) by itself is positively related to subsequent stock returns, and two subcomponents of B/P, ...Measuring Free Cash Flows for Equity Valuation: Pitfalls and Possible SolutionsThe authors describe problems with common cash flow metrics and provide advice on how to calculate cash flow metrics that ...The Adjusted Earnings YieldThe earnings yield, determined by the ratio of reported earnings to price, is frequently used to predict real return. ...Corporate Pension Funding and Credit SpreadsThis study empirically tested whether pension information derived from accounting disclosures is priced in corporate bond ...Reliability, Comparability, and ConsistencyLack of awareness about XBRL provides an opportunity for education.FASB’s Quick Fix for Pension Accounting Is Only First StepPrevious accounting standards allowed companies with underfunded pension plans to accumulate pension liabilities off the balance ...On the Use (and Abuse) of Stock Option GrantsRecently, a significant number of companies have come under public and regulatory scrutiny for backdating stock option grants. ...X Marks the SpotThe CFA Institute Centre is weighing in on XBRL.Fallout? What Fallout?The backlash from the stock options backdating scandal is almost non-existent.A Comprehensive Business Reporting Model: Financial Reporting for InvestorsThe CFA Institute Centre for Financial Market Integrity has published a new financial reporting model that ...Beginning to Overhaul the Pension Accounting RulesThe Financial Accounting Standards Board has been busy revising the rules for pension accounting. These rule changes ...Quality Information = More Efficient MarketsCorporate Disclosure Policy Council strives to improve financial reporting.Fair Value Financial Reporting: An Investor Perspective, Part 2How can investors more efficiently and effectively use the mixed attribute information currently available to them?An Apples-to-Apples ComparisonCFA Institute Centre for Financial Market Integrity introduces template for reporting quarterly earnings.Into the BreachCan securities analysts bridge the gap between earnings management and financial reality?Accounting and Valuation: How Helpful Are Recent Accounting Rule Changes?On the Use (and Abuse) of Stock Option GrantsRecently, a significant number of companies have come under public and regulatory scrutiny for backdating stock option grants. ...China Corporate Governance SurveyFrom August to September 2006, the CFA Institute Centre conducted a study of corporate governance practices ...Capping It OffShould auditors be protected by liability caps?Interest Rate Swaps: Accounting vs. EconomicsWith interest rate swaps being the most widely used of all financial derivative contracts, financial analysts and engineers ...FASB’s Quick Fix for Pension Accounting Is Only First StepHidden liabilities, understated expenses, and discretionary management assumptions make pension accounting controversial. ...Accounting Restatements: Are They Always Bad News for Investors?The authors examine the relationship between accounting restatements and their impact on equity returns. The literature has ...Value Destruction and Financial Reporting DecisionsThe comprehensive survey reported here allowed analysis of how senior U.S. financial executives make decisions related to ...Fair Value Financial ReportingAn investor's perspective.Transparent, Translucent, or Transient: Where Have IFRS Left Us?The business of finance and investment is international, and accounting standards should be too. Many people believe that a ...Value Destruction and Financial Reporting DecisionsThe comprehensive survey reported here allowed analysis of how senior U.S. financial executives make decisions related to ...Earnings Quality Analysis and Equity ValuationFor years, a widely held belief was that markets are efficient and that fundamental analysis is futile. But ...Bad TimingNew rules for disclosure of stock options.The X-FactorThis article addresses the following key points: • Proponents believe eXtensible Business Reporting Language will revolutionize ...An IFRS 2 and FASB 123 (R) Compatible Model for the Valuation of Employee Stock OptionsAlthough accounting standards boards have recently issued standards requiring companies to recognize employee stock options as an ...When Does R&D Expense Distort Profitability Estimates?The authors develop a model that determines when return on assets (ROA) is more likely to be distorted by the immediate expensing ...Cash Flows, Accruals, and Future ReturnsThis study explored the “accrual anomaly.” The study is unique because it analyzed originally reported—unrestated—quarterly data ...Do We Accept Accrual Profits at Our Peril?The study described documented evidence that informed traders use their proprietary information on accrual quality to trade ...Terms of EngagementCFA Centre joins efforts to reverse overemphasis on short-term performance.A Proposed Business Reporting ModelThe current business reporting model is in need of repair. The CFA Centre for Financial Market Integrity is ...Analyzing the Impact of Retirement LiabilitiesRetirement benefits represent a tremendous but obscured component of corporations’ finances. The current ...A Fair QuestionThis article addresses the following key points: • Global accounting standard setters are increasingly embracing the use of fair ...Earnings Predictability, Bond Ratings, and Bond YieldsAlthough long-term earnings flows of companies may not be completely predictable, the authors theorize that expectations ...The Ability of Earnings to Predict Future Operating Cash Flows Has Been Increasing—Not DecreasingPrevious research found that the explanatory power of earnings for concurrent stock prices has decreased over time. However, the ...Tax Rates and Stock Returns: An Empirical Analysis of the Information Content of Corporate Tax RatesThe authors explore the information content of corporate tax rates by analyzing the effective tax rates of S&P 500 Index ...The Degradation of Reported Corporate ProfitsThe author argues that the dual nature of corporate profit reporting has given managers the ability to mischaracterize tax ...Using Investor Relations to Maximize Equity Valuation (a review)This short, easy-to-read volume describes aspects of the investor relations function; comments about methods to attract different ...Profits You Can Trust (a review)Two accounting professors and an editor at the Harvard Business Review have produced a useful set of guidelines and advice for ...The Future of Business ReportingThis article addresses the following key points: The CFA Centre for Financial Market Integrity has proposed fundamental reform of ...Darning SoxShould the Sarbanes-Oxley Act be mended or ended? Hidden Financial Risk: Understanding Off-Balance Sheet Accounting (a review)This book provides an excellent short course in understanding and revealing financial reporting trickery, with particular ...The Association between Outside Directors, Institutional Investors and the Properties of Management Earnings ForecastsThis paper hypothesizes a positive relationship between earnings forecasts and the percentage of outside directors as well as the ...Informational Effects of Regulation FD:Regulation Fair Disclosure (Reg FD) provides bond analysts at rating agencies with an information advantage over equity analysts. ...Beyond Financial Reporting—The author outlines an integrated approach to corporate disclosure, supplementing required reporting with information and ...Valuing Routine Intangible AssetsThe author considers valuation techniques for “routine” intangible assets, or those that do not increase firm value but, rather, ...Does Allowing Alternative Hedge Designations Affect Financial Statement Comparability?Statement of Financial Accounting Standards (SFAS) No. 133 was issued to help provide more consistent guidance for financial ...Choosing the Right Valuation ApproachBefore beginning any analysis, the analyst should define the claim and level of value, the valuation date, ...An Analyst's Perspective on Financial ReportingAnalyzing financial statements is difficult because (1) the information is spread across three separate ...The Short Perspective in Today's MarketsWhen analyzing a company, examining the financials—the numbers—is clearly important. But it is not the only ...The Cost of Employee Stock OptionsExpensing stock options is an issue that has been hotly debated for more than 20 years. But it looks like its ...Just Another Gray Sheep?This article addresses the following key points: Holding-company and pyramidal ownership structures make related-party ...The Economics of Short-Term Performance ObsessionIn theory, discounted cash flows (DCFs) set prices in well-functioning capital markets. In practice, investment managers attach ...Disclosure and the Loan Spread on Private DebtCompanies that consistently make detailed, timely, and informative disclosures face lower costs of public equity and debt ...Interpretation and Use of Auditor Fee DisclosuresPublicly available fee disclosures have been used by investors and regulators to assess various matters, including the quality of ...What Investors Need to Know about the Transition to IFRSKimberley Crook, a senior project manager on the staff of the International Accounting Standards Board, outlines present and ...IAS 39—What Is Fair, What Is Value?The introduction of International Accounting Standard 39 Financial Instruments: Recognition and Measurement is arguably the ...Business Combinations, Acquisitions, and GoodwillThe introduction of International Financial Reporting Standard 3 Business Combinations in early 2004 has meant greater ...The Impact of Pension Accounting on Financial Statements and DisclosuresInternational Accounting Standard (IAS) 19 Employee Benefits is a big step forward in pension accounting. In addition to ...EU Financial Reporting: Recent DevelopmentsWith the increased globalization of markets comes the desire to have common accounting standards. In pursuit of that goal, the ...Bullish on the BearMost investment professionals in Russia are optimistic about the investment climate in Russia, but the same ...Scalawags, Scoundrels, and Self-Dealing: Business as Usual in the 21st Century?This article addresses the following key points: Forty percent of the companies in the S&P 500 have business ...Around the World in 80 Ways?This article addresses the following key points: Along with the European Union, about 65 other countries worldwide are ...Convertible Bonds: How Much Equity, How Much Debt?Financial analysts need accurate estimates of debt, equity, leverage, and EPS. The method proposed here, based on the probability ...Economic Sources of Gain in Stock RepurchasesThe authors use more than 5,000 open-market repurchases from 1980 to 1996 to evaluate three economic motives ...Employee Stock Options, Corporate Taxes, and Debt PolicyThe authors study the effect of the tax deductions that companies obtain when employees exercise stock ...Security Analyst Independence Many investors perceive, based primarily on anecdotal evidence, that analysts do not act independently. What the authors of this ...Employee Stock Options and Equity Valuation Increasingly, companies are turning to employee stock options to meet the challenge of aligning the interests of employees and ...Earnings Quality Understanding the quality of earnings is an essential part of processing and interpreting information. A high-quality earnings ...U.S. UpdateThis section provides updates on the Financial Accounting Standards Board's new standard for acquisitions of certain financial ...International Financial ReportingThis section summarizes the efforts of the International Accounting Standards Board and the Public Sector Committee of the ...Sarbanes–Oxley Act of 2002: Sweeping Legislation Changes Corporate and Accounting LandscapeThe Sarbanes–Oxley Act, signed into law on 30 July 2002, includes a wide variety of reform measures intended to address corporate ...Financial Reporting: U.S. UpdateThis section reviews the Financial Accounting Policy Committee's (FAPC's) deliberations on several rules proposed by the U.S. ...Financial Reporting: Other Countries UpdateThis section examines the European Financial Reporting Advisory Group's (EFRAG's) recommendation to approve all International ...Financial Reporting: International Financial ReportingThis section outlines the International Accounting Standards Board's new work program and the Board's two proposals that have ...Financial Reporting: U.S. UpdateThis section contains information on the Financial Accounting Foundation's changes to the Financial Accounting Standards Board's ...Financial Reporting: Other Countries UpdateThe AIMR Canadian Advocacy Committee met with the Accounting Standard Board of the Canadian Institute of Chartered Accountants to ...Financial Reporting: International Financial ReportingThis section includes updates on the International Accounting Standards Board's exposure draft on improvements to 12 of its 34 ...GAAP 2001:Benchmarking National Accounting Rules against International Accounting Standards GAAP 2001 provides regulators and users of financial information with summaries of areas in which the national accounting ...Financial Reporting:U.S. UpdateThe trustees of the Financial Accounting Foundation have proposed some changes to the Financial Accounting Standards Board in the ...Financial Reporting:Other Countries UpdateThe Accounting Standards Board of the Canadian Institute for Chartered Accountants (CICA) released a draft of an accounting ...Financial Reporting:U.S. UpdateThe U.S. SEC recently issued a statement of its views regarding reporting management's discussion and analysis (MD&A) in ...Financial Reporting:Other Countries UpdateThe Canadian Institute for Chartered Accountants (CICA) recently issued for public comment draft guidelines for management's ...Financial Reporting:U.S. UpdateIn August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 144, Accounting ...Financial Reporting:Other Countries UpdateThe Other Countries Update addresses such topics as the announcement by Canada's Accounting Standards Oversight Council and ...AIMR's Stock Option SurveyA recent AIMR survey, sent to more than 18,000 members in September 2001, measured the views of AIMR members regarding ...Valuation of Brands and Intellectual CapitalThe author considers several methodologies used for valuing brands and intellectual capital, including those of Interbrand, ...Financial Warnings: Detecting Earning Surprises, Avoiding Business Troubles, Implementing Corrective StrategiesThis book discusses earnings surprises by corporations and the financial statement information that analysts and investors need ...The Effect of Analyst Coverage on the Informativeness of Income SmoothingCompanies that have an analyst following seem to practice income smoothing, which may convey private ...The Market Value of Public-Sector Pension BenefitsAmerican Enterprise Institute for Public Policy Research: States report that their public-employee pensions are underfunded by a ...CD&A Template Improves Compensation Disclosure The Compensation Disclosure and Analysis Template was developed by a CFA Institute-led working group of issuers, investors, and ...Issue Brief: Compensation Disclosure and Analysis TemplateThis issue brief provides guidance to help issuers tell a story about their compensation policies, practices, and decisions, and ...Benjamin Graham: Building a Profession (Take 15 Series Transcript)The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...Foreign Account Tax Compliance Act (FATCA) – An Update for Industry ProfessionalsThe U.S. government’s determination to deter tax evasion on offshore assets and boost general taxpayer morale is reflected in ...Understanding the New U.S. GAAP & IFRS Proposals on Revenue Recognition Why Should Investors Listen to this Webcast? Revenue is a key driver in analyzing investment performance and making investing ...Key Findings from Financial Instruments Risk Disclosures ReportCFA Institute has issued a report on financial instruments risk disclosures made under IFRS. This video highlights key findings ...Setting the IASB's Agenda for the Next Decade: Investor Update and Input Opportunity What Is Discussed? For the first time since it was formed in 2001, the International Accounting Standards Board (IASB) consulted ...The Current State of Accounting and Reporting for Financial InstrumentsWhy Should Investors Care? The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) ...SEC’s Release on Incorporating IFRS into the U.S. Financial Reporting System: Investor ConsiderationsCFA Institute is pleased to offer this timely webinar to update members and other interested investors on the contents of the ...How Are Asian Financial Institutions Impacted by Changing Accounting and Regulatory Regimes? (Take 15 Series) Yin Toa Lee, CFA, reviews the new global regulatory initiatives and changing accounting standards and their business impacts on ...Asian Financial Institutions under the New Accounting RegimeYin Toa Lee, CFA, provides an overview of the various recent accounting standards changes from the FASB and IASB, as well as the ...A New Framework for Evaluating Design and Governance of a Pension SystemDavid C. Villa, CFA, explains why there needs to be a new framework for discussion of retirement savings and compares the costs ...Geopolitical Risks and Trends (Take 15 Series)Kevin Kajiwara discusses the global investment implications of current geopolitical trends and risks. The Take 15 Series is a ...Free Cash Flow and the Cost of Equity Capital (Take 15 Series) Kenneth S. Hackel, CFA, author of the book Security Valuation and Risk Analysis, challenges traditional thinking on important ...Relative Valuation: Improving the Analysis and Use of MultiplesAswath Damodaran presents an approach for analyzing and using multiples (e.g., price-to-earnings and enterprise-value-to-EBITDA ...Convergence of Accounting Standards (Take 15 Series)The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...The Analytical Implications of Accounting ConvergenceKarl Debenham explains the upcoming convergence of accounting standards and the effects of convergence on analysts, investors, ...FASB's Financial Instruments Exposure Draft and the CFA Institute Position on Fair Value Accounting CFA Institute is pleased to offer this timely webcast, which includes an update on the recently issued FASB Financial ...Benjamin Graham: Building a Profession (Take 15 Series)The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...Identifying Accounting Shenanigans (Take 15 Series)In this episode, Howard Schilit reviews a few cases of accounting fraud and discusses techniques on how to identify accounting ...Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial ReportsIn this webcast, Howard Schilit discusses seven earnings manipulation shenanigans and points to specific examples of how ...Financial Analysis—How to Spot Red FlagsSome companies thrive. Some companies struggle. Many companies are under pressure to announce increased earnings and improved ...Post-Crisis Reform and Fair Value Accounting This is a short video from Harvard Business on YouTube that deals with the issue of fair value accounting in the U.S. context. Financial Instrument Accounting: IFRS after the CrisisThe financial crisis has sharpened focus on accounting treatment of financial instruments. The accounting approach can influence ...Solutions for the Pension Crisis In this webcast, Ronald J. Ryan, CFA, discusses the following: Developing an appropriate benchmark and core portfolio based ...The Municipal Industry in an Era of Illiquidity, Volatility, Ratings Ambiguity, and Market ManipulationIn this podcast, Thomas G. Doe discusses the following: What impact has the credit crisis had on the primary and secondary ...Fair Value Accounting: Where Are We and Where Are We Going?In this podcast, Marc A. Siegel discusses the following: History of the most contentious current issue in financial ...Alternative Energy Sources In this webcast, Pearce W. Hammond, Jr., CFA, discusses the following: How will alternative energy sources grow in ...The Oil Service Sector: The New Big Oil? In this webcast, Byron K. Pope, CFA, discusses the following: What role can the service sector play in a world where ...Global Convergence of Accounting Standards—Building Infrastructure for the World's Capital Markets In this webcast, Stephen Cooper discusses the following: What can investors expect to gain from the global adoption of ...After the Credit Crisis: Transparency and Other Issues in Financial Statement AnalysisIn this podcast, Jeremy Perler, CFA, discusses the following: Striving for continuous improvement in investment research: ...The EVA Framework and the Current Economy (Take 15 Series) The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment ...Conversation with a Money Master: Free Cash Flow and Quality of EarningsIn this webcast, Robert A. Olstein and Fred H. Speece, Jr., CFA, discuss the following: Valuation and inferential ...How to Read a 10-Q Like an Investment Professional: Sequel to Wal-Mart Analysis Webcast CFA Institute—the non-profit association that administers the Chartered Financial Analyst® educational program for investment ...Getting Ahead of the Curve When Valuing Level 3 Investments: Valuing and Auditing Illiquid Investments In this one-hour webcast session, John Czapla, and Rob Barnett from Valuation Research Corporation (VRC), along with Michael ...Course 1000e - IFRS Immersion WorkshopThis 80-day IFRS immersion course (9 January - 28 March 2012) focuses on all significant IFRS requirements, with detailed ...Course 1030e - IFRS BasicsThis 20-day e-learning course is an introduction to key technical issues involved in understanding and applying IFRSs. The next ...Loan StructuringThis course will introduce you to the elements of structuring a loan from both the borrower's and the lender's point of view. You ... Conversation on Twitter Loading ... Continuing Education Progress CFA Members, log in to record credits towards your continuing education. Annual recommended minimums:20 CE, including 2 SER. Manage Your CE Credits CeDiarySummary Most Viewed Foreign Account Tax Compliance Act (FATCA) – An Update for Industry Professionals Understanding the New U.S. GAAP & IFRS Proposals on Revenue Recognition Reliability, Comparability, and Consistency Top Rated What Analysts Should Know about FAS No. 141R and FAS No. 160 A Matter of Trust How to Read a 10-Q Like an Investment Professional: Sequel to Wal-Mart Analysis Webcast Looking for Something Specific? Search our library for more on financial statement analysis Subscribe to financial statement analysis content Contact CFA Institute content specialists