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In seeking to meet the objectives of financial reporting stated in the IASB’s Conceptual Framework, the current ‘balance-sheet’ approach is necessary but not sufficient. Critical, but largely overlooked in the Framework, is the role of uncertainty, which we argue defines the role of accrual accounting in providing useful information to investors.
Fair value measurement (FVM) in IFRS calls for a market-oriented representation of economic ‘reality’, whereby the values attributed to rights (assets) and obligations (liabilities) are in principle determined from the perspective of the ‘market participant’ rather than that of the reporting entity.
This paper examines the textual characteristics of firms’ 10-K filings over a 20 year time period. We find that investors’ reaction to textual characteristics of the MD&A in 10-Ks is much stronger and more timely than their reaction to textual characteristics of the notes to the financial statements.
We provide new evidence on the information content of insider sales using SEC Form 4 footnote disclosures.
This paper investigates whether and how financial restatements affect the market for corporate control. We show that firms that recently filed financial restatements are significantly less likely to become takeover targets than a propensity score-matched sample of non-restating firms.

Is the IASB consistent on conservatism?

Richard Barker
Anne McGeachin
In 2010, the IASB revised its Conceptual Framework and rejected the concept of conservatism (or prudence), arguing it to be inconsistent with neutrality, an aspect of faithful representation.
The argument in this paper is that financial accounting is inherently conservative, in that a neutral application of the International Accounting Standards Board (IASB's) definition of (net) assets leads to book value being less than economic value.
Accounting report
Our analytical description of how banks’ responses to asset price changes can result in procyclical leverage reveals that for banks with a binding regulatory leverage constraint, absent differences in regulatory risk weights across assets, procyclical leverage does not occur.
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