We are excited to announce the newest addition to the Education section of our site: the Financial Accounting Standards Board (FASB) Tracker. The FASB Tracker is your one-stop shop for knowing how changes in accounting standards affect investing. This new section gives you the scoop on what’s happening at the FASB and International Accounting Standard Board (IASB) and how it affects fundamental analysis.
We recognize the difficulties in keeping up with all the new accounting standard updates, amendments, and clarifications that come from the FASB and IASB each year. The goal of this new resource is to cut through the noise and give investors clear insights into what matters when it comes to accounting rule changes.
Importantly, we will focus on how the FASB and IASB change how to assess the underlying economics, not just accounting, of business performance and valuation. This new section of our site will identify which accounting rules require adjustments to earnings models and when those changes go into effect. We will also tell you which accounting rule changes require no changes.
The FASB Tracker focuses on detailed explanation and analysis of the most impactful rule changes. See below for a list of deep dives into recent rule changes.
- The Impacts of Operating Leases Moving to the Balance Sheet
- How Operating Lease Discount Rates Can Mislead Investors
- Pension Cost Accounting Rule Change
- Not Requiring the Amortization of Capitalized Interest Disclosure Is Not Good for Investors
- Removing the Hedge Ineffectiveness Disclosure Requirement Is Not Good for Investors
- How Companies Implemented the New Revenue Recognition Standard
- How ASU 2016-01 Impacts Invested Capital and OCI
This kind of work is our specialty. We have spent many years training our machine learning engine to read SEC filings, reverse accounting loopholes, and build the only comprehensive database of footnotes disclosures. No one understands the economic meaning of accounting data as well as we do, as featured in this Harvard Business School and MIT Sloan paper.
This article originally published on November 15, 2019.
Disclosure: David Trainer, Kyle Guske II, and Sam McBride receive no compensation to write about any specific stock, sector, style, or theme.