Peeling away financial reporting issues one layer at a time


Are Stock Options an Efficient Form of Executive Compensation? – No!

Have you noticed how a large number of companies curtailed or eliminated their stock option grant programs when FAS 123R became effective?  You frequently hear proponents of stock option programs spout the line that [Read More...]

The Four Sins of Stock Option Backdating

I have a weak spot in my heart for my former students–especially if they were also my tennis or cycling buddies.  Chris, of the cycling variety, recently sent me this email message:

…So, today I [Read More...]

SEC Posts Research Guide to Website

Understanding the SEC’s system of publishing rules and related literature is complicated; and finding the information you need from the SEC’s website,, is no picinic either.  Help has arrived in the form [Read More...]

Here is More to Know about the SEC’s Views on Executive Compensation Disclosures

In my earlier post on executive compensation disclosures, I reported that the SEC may have surprised, and frustrated, many by issuing comment letters to some 300 companies on their executive compensation disclosures. Although [Read More...]

Disclosure of Accounting as a Risk Factor is Questioned by the SEC

Regulation S-K Item 503(c) requires disclosure of the most significant factors that make an offering speculative or risky.  Recently, and seemingly in response to the new requirement that these disclosures be made on an [Read More...]

How Much Will the SEC Tighten the Screws on Executive Compensation Disclosures?

I have often started a class discussion with the following series of statements:

We learned in Finance 101 that the value of a business is the present value of expected future distributions of cash to [Read More...]

APB 18: SEC Disclosures Paper Over Decades-Old Bad Accounting

Every three months, the SEC Regulations Committee  of the AICPA takes SEC staff members to lunch, and discuss emerging [Read More...]