A Big Change in Bank of America’s Accounting Policy

Voluntary changes in accounting principle are usually disclosed in so-called preferability letters, but occasionally a significant change will be disclosed in an 8-K current report. Last Friday, Bank of America did just that, disclosing that they would be changing their method of … Continue reading

The Misrepresentation of Earnings; by Dichev et al.

In a recent article in the Financial Analysts Journal, titled “The Misrepresentation of Earnings,” Ilia Dichev, John Graham, Campbell R. Harvey, and Shiva Rajgopal explore the defining characteristics of earnings quality and the misrepresentation of earnings. As part of their inquiry, … Continue reading