Citigroup, Inc and American International Group, Inc have two very disparate views on the realisability of their deferred tax assets. Important to each company's decision is the assessed availability or lack of tax-planning strategies needed to generate future taxable income. Yet,...

Under current GAAP, initial bargain-purchase amounts, also known as negative goodwill (NGW) or the excess of the fair value of acquired net assets over the cost of an acquisition, are typically reduced or eliminated altogether by being allocated against the fair values of certain acquired assets...

The FASB recently issued Proposed Statement of Financial Accounting Standards, Accounting for Hedging Activities: An Amendment of FASB Statement No. 133. The proposed standard simplifies the accounting for hedging activities and generally increases the appeal of hedge accounting. In this report...

The Financial Accounting Standards Board (FASB) is currently evaluating proposed changes to the manner in which insurance companies account for, and currently capitalise, the costs of selling and initiating insurance contracts. Our study examines the potential effects of these proposed changes...

In this study, for a sample of 120 companies, we identify and recast the statement of cash flows for the implied cash effects of six general categories of non-cash activity, transactions affecting 1) capital expenditures and operating activities, 2) capital expenditures and other investing...

In this study, we examine unrecognised tax benefits for the firms comprising the S&P 100. Our objective is to clarify their accounting and measure their significance relative to assets, income tax expense and net income. While the median unrecognised tax benefit liability for our sample is...

A non-controlling interest, also known as a minority interest, exists when a subsidiary is not wholly owned by the parent company. While a careful designation of income and equity attributable to non-controlling interests is made on the income statement and balance sheet respectively, under GAAP...

The FASB, in conjunction with the International Accounting Standards Board, is currently in the planning stages of a project that would revise SFAS 13, Accounting for Leases. What is proposed is that leases that are presently accounted for as operating leases, that is, those leases that do not...

Motivated in large measure by the work of Edward Miller (1977), a number of recent studies have investigated the impact of divergent expectations on security risk and return (see Bart and Masse, 1981; Friend, Westerfield and Granito,1978; and Peterson and Peterson, 1982). In addition, some theoretical...