Financial Reporting Journal - Summer '96

CONTENTS


PRESIDENT'S LETTER

Eugene E. Comiskey 
Georgia Institute of Technology

The August AAA convention in Chicago will mark the close of my term as President of the Section. It has been an honor to serve. Our President-Elect, Wayne Landsman of the University of North Carolina, will assume leadership of the Section at the business meeting in Chicago. As President, Wayne will serve as a member of the AAA Council. Since our Section membership exceeds 1,000, we are allowed two representatives on Council. Linda Bamber of the University of Georgia will continue for a second year as our second representative. Tom Frecka of the University of Notre Dame also will continue in the second year of his term as Secretary-Treasurer. Mike Crooch of Arthur Andersen LLP completes his two-year term as Vice-President (from practice). The Section has benefitted greatly from Mike's wise council. Robert Swieringa of the Financial Accounting Standards Board/Yale University has agreed to stand for election to President-Elect and John T. Smith of Deloitte & Touche for Vice-President (from practice). Bill Collins of the University of North Carolina at Greensboro will pass on the Editorship of our newsletter, the Financial Reporting Journal, to Chuck McDonald of the University of Florida. Bill has served the Section from its inception, initially as Secretary-Treasurer. Last year, he agreed to continue to serve the Section as Editor of the Financial Reporting Journal as part of our decision to separate the Journal editorship from the duties of the Secretary-Treasurer. With a long-term interest and participation in CPE activities, Bill has agreed to continue his service to the Section as Chair of the newly created CPE committee. The Section has benefitted tremendously from Bill's past contributions and I am delighted that he will continue to serve in this new capacity.

Membership
Membership in the Section continues to grow and currently totals 1,377, up from 1,240 last year. Membership is distributed as follows: full U.S. members, 910; full international members, 359; and associate members, 108.

Section's Role in Regional Meetings
We owe a significant debt to the Section's Regional Coordinators. The Regional Coordinators represented the Section at the seven regional meetings held this spring. They handled the demanding job of getting financial accounting and reporting manuscripts reviewed and arranging the Section's representation on the regional programs. The quality of the programs arranged by our Coordinators was truly impressive. My sincere thanks go to Rob Bricker, Robert Lipe, Gerald Lobo, Susan Pourciau, Heibatollah Sami, Bob Vigeland, and David Ziebart.

Planned Section Activities at the 1996 Annual Meeting
The Annual Meeting Program Committee, initiated this year and chaired by Greg Waymire of Emory University, had a formidable task. Over two hundred manuscripts were submitted and Greg employed all of the approximately 156 Section members who volunteered to serve as reviewers. Greg's committee included: Kirsten Ely (Emory), Jenny Gaver (University of Georgia), Steve Goldberg (Georgia Tech), and Kumar Sivakumar (Georgia State). Greg was able to assemble his committee for two meetings in Atlanta at a very small cost to the Section due to the geographical proximity of its members. My hope is that this model of naming a chair from an area with a concentration of colleges and universities can continue to be employed as a device for managing this critical and expanding activity. Greg and his committee did a great job. From the submitted manuscripts, they arranged thirteen research sessions that include a total of approximately 40 presentations. In addition, the program developed by Greg and the plans he has formulated should make the task even more manageable for the 1997 Program Committee Chair. In addition to the research paper sessions arranged by the Annual Meeting Program Committee, the following four panel sessions were developed by the Section officers, along with Greg Waymire, Linda Bamber and Bill Collins:

Thursday, August 15, 1996
4:00 - 5:30
Accounting Theory and Equity Valuation
Panel: Gerald A. Feltham, University of British Columbia and James A. Ohlson, Columbia University. Moderator: Paul M. Healy, Massachusetts Institute of Technology


Friday, August 16, 1996

10:15 - 11:45
Securities Law Tort Reform: Its Implications for the Profession
Panel: William R. Kinney, Jr., University of Texas at Austin; Carl Liggio, Dickenson, Wright, Moon, Van Dusen & Freeman, Chicago; and Robert Mednick, Arthur Andersen LLP and 1996/97 AICPA Chairman. Moderator: Charles L. McDonald, University of Florida 2:15 - 3:45
Contemporary Issues in Standard Setting
Panel: Dennis R. Beresford, Chairman, Financial Accounting Standards Board and Michael H. Sutton, Chief Accountant, Securities and Exchange Commission Moderator: William A. Collins, University of North Carolina at Greensboro
4:00 - 5:30
Innovative Teaching of Financial Reporting from a Decision Perspective in Intermediate, M.ACC and MBA Courses
Panel: Richard E. Brownlee, University of Virginia, Darden School; E. Daniel Smith, University of Georgia; and James M. Wahlen, University of North Carolina at Chapel Hill Moderator: G. Peter Wilson, Massachusetts Institute of Technology

Section Luncheon
The Section Luncheon will be held on Thursday, August 15, beginning at noon and concluding by 2:00 pm. As was true last year, the luncheon is subsidized by the Section to encourage participation by as many Section members as possible. G. Michael Crooch of Arthur Andersen LLP and current Chair of the AICPA's Accounting Standards Executive Committee will be the luncheon speaker. Section members are encouraged to sign up quickly since capacity is limited.

Business Meeting
The business meeting will be held on Thursday following the luncheon. It is scheduled to begin at 2:15 pm and conclude by 3:45. The agenda for our meeting is presented immediately following this letter.

FASB and SEC Support of the Section
We appreciate the continuing support provided to the Section by the FASB and the SEC. In an effort to keep us informed of their activities and to promote our involvement, Denny Beresford and Mike Sutton again will present their very popular panel discussion at the Annual Meeting. The FASB also continues to provide us with copies of their Status Report, three issues of which are included in this mailing. Terry Warfield, the current SEC Academic Accounting Fellow, provides an update of current SEC accounting-related developments later in this Newsletter, an update that began in our last Newsletter. I encourage you to stay current and be involved in the activities of both the FASB and the SEC. I further encourage you to be involved in the activities of the Section. At the Section luncheon and business meeting, I'll brief you on some additional Section activities that are under consideration. I look forward to getting your feedback on these proposals and hearing about other activities in which you think the Section might become involved.

FINANCIAL ACCOUNTING AND REPORTING SECTION BUSINESS MEETING AGENDA

Report from the Section President, Eugene E. Comiskey Report from the Immediate Past-President, Jim Largay, Chair of the Nominations Committee and the taking of nominations from the floor Vote by attending Section members on nominations for President-Elect and Vice President (from practice) Financial report and budget presentation by the Secretary-Treasurer, Tom Frecka, followed by a vote from attending Section members on the proposed 1996/97 budget Assumption of office and remarks, including an update on the Section's planned research conference, by the incoming President, Wayne Landsman Consideration and vote on the following changes affecting the by-laws:
1. To change the by-laws to assign responsibility for selection and appointment of Regional Directors and Regional Director-Elect to the duties of the President-Elect from those of the President. Comment: This simply conforms the by-laws to what has evolved as the practice of the Section.
2. To add the position of Editor of the Financial Reporting Journal to the list of Section Officers. This will entail removing duty number three from the current set of duties of the Secretary-Treasurer. Further, this will require adding the Editor to those included on the Executive Committee. Comments: The position of the Editor of the Financial Reporting Journal is a significant assignment in its own right. Further, it was felt that the duties of Secretary-Treasurer should not include the responsibility for production and distribution of the Journal.
3. To add selection of the Section's second member of Council to the responsibilities of the Nominating Committee, with the term of the member selected to be for one year. In addition, service on the Council would be added to the listed duties of the President. Comment: The growth in Section membership to above 1,000 permits a second representative from the Section to the Council. In the spirit of including more members in the Section's activities, selection from other than the Section's officers was and is seen to be desirable.
4. To add an additional award for the best financial accounting and reporting paper presented at the Annual Meeting of the Association. As with the Best Paper Award (an award instituted in 1995 for a paper "published" in the three years prior to the award year), an appropriately inscribed certificate and a cash prize (initially set at $1,000 total) would be presented to the authors(s) of the winning paper at that year's Section meeting held during the AAA's Annual Meeting. Selection would be made by the Annual Meeting Program Committee. At least one author of the paper would be required to be a member in good standing of the Section.

CURRENT DEVELOPMENTS IN THE OFFICE OF THE CHIEF ACCOUNTANT OF THE U.S. SECURITIES AND EXCHANGE COMMISSION

Terry D. Warfield Academic Accounting Fellow1

The purpose of this column is to provide an overview of some recent activities in the Office of the Chief Accountant at the U.S. Securities and Exchange Commission. From a general perspective, the federal securities laws attempt to achieve two things. First they seek to protect investors and, second, they seek to facilitate informed investment decisions. Both of these objectives rely on financial reporting as a means to their achievement. Thus, when an issue arises which raises questions about whether financial reporting is meeting the needs of investors in making informed analyses and investment decisions, the staff is likely to get involved. Each of the three topics discussed below represent different types of initiatives that are intended to address contemporary financial reporting issues. Specifically, the topics discussed include (1) a proposed rule to expand disclosures on market risks and financial instruments, including derivatives; (2) a recent Staff Accounting Bulletin related to treasury stock purchases following a business combination, and (3) a symposium held at the Commission on the accounting and reporting of intangible assets.
Derivatives Disclosures
Derivatives use and accounting has received considerable attention in the popular press, highlighted by some notable losses involving derivatives.2 A primary reason why derivatives have become such an important financial reporting issue is that many investors need help in understanding derivatives and the related risks and uncertainties. The Association for Investment Management and Research and the AICPA Special Committee on Financial Reporting (Jenkins' Committee) both report that investors are "confused" or "confounded" about the financial statement impacts of certain derivative and other complex financial instruments.3 These reports, along with banking regulators and other private sector entities, such as the Group of Thirty, have been calling for improved reporting on these activities.4 To improve investor understanding of derivatives, there are two fundamental but significant issues that must be addressed. First, the accounting model for derivatives needs to be improved. Second, we need more informative disclosures about derivatives and related risk management activities. With respect to the accounting for derivatives, the FASB is continuing to work on a standard that is intended to improve the accounting for derivatives. In general the FASB is attempting to craft a standard that will address the accounting for many recently developed instruments, not presently covered in the accounting literature, while at the same time bringing the fair values of those instruments out of the footnotes and onto the balance sheet. On the disclosure front, in 1994 the FASB issued Statement of Financial Accounting Standards No. 119, "Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments" (FAS 119) to improve the disclosures about derivatives. During 1994 and 1995, the staff at the SEC reviewed the annual reports of over 500 registrants to assess the quality of disclosures related to derivatives and other financial instruments and to determine if additional information is needed. The results of the review indicated that while FAS 119 did have a positive effect on disclosures in this area, better disclosures were needed about the effects of derivatives on financial statements.
Proposed Commission Rules
In December, 1995, the Commission issued a release for comment related to disclosures about derivative financial instruments, other financial instruments and derivative commodity instruments (the "Release"). The Release contains proposed amendments to Regulations S-X, S-K and various forms, including Form 20-F, and certain interpretive guidance. Specifically, with respect to S-X requirements, the Release proposes a comprehensive description of the accounting policies used to account for derivatives. In essence, the Release makes explicit the disclosure requirements set forth in FAS 119 and, if adopted, would extend those requirements to derivative commodity instruments. The Release also proposes that registrants present quantitative information about market risk at the end of the most recent reporting period. Essentially, these amendments to Regulation S-K would require the quantitative information that is encouraged to be disclosed by FAS 119. Registrants would meet these requirements in one of three ways: 1) tabular information regarding expected future cash flow amounts by expected maturity dates for market risk sensitive instruments; 2) a sensitivity analysis expressing the possible loss in earnings, fair values or cash flows of market risk sensitivity analysis expressing the possible loss in earnings, fair values or cash flows of market risk sensitive instruments from selected hypothetical changes in market rates or prices; or 3) value-at-risk disclosures expressing the potential loss in earnings, fair values, or cash flows of market sensitive instruments from market movements over a selected period of time with a selected likelihood of occurrence. Also proposed is a narrative disclosure of the registrant's primary market risk exposures and how the registrant manages those exposures. These proposals expand certain of the requirements of FAS 119 to encompass derivative commodity instruments, other financial instruments, and trading instruments. Interpretive guidance also is provided to remind registrants to disclose the effects of derivatives on interest rates and repricing of characteristics of debt obligations. These disclosures are designed to report how derivatives can modify reported items and remind registrants of items that should already be disclosed in their filings. The Commission is seeking comment on these amendments until May 20, 1996. The text of the proposed amendments, as well as documents related to other issues discussed in this column, can be accessed on the Commission's Internet website (http://www.sec.gov ). The Release just discussed provides the Commission's current thinking on disclosures related to derivatives and financial instruments and represents an initiative to improve disclosures, thereby meeting the mandate of investor protection. Another recent development at the Commission also addresses this mandate by providing accounting guidance related to business combinations.
Treasury Stock Acquisitions Following a Business Combination
In March 1996, the staff of the Commission issued Staff Accounting Bulletin 96 (SAB 96), regarding the effect of treasury stock acquisitions following consummation of a business combination accounted for as a pooling of interests. SABs set forth the staff's interpretation of generally accepted accounting principles with respect to particular transactions. In this case, the staff had noted diversity in practice when applying the accounting literature (primarily APB Opinion No. 16) to business combinations, when treasury stock repurchases are an element of the deal. The objective of SAB 96 was to provide additional guidance to help clarify acceptable practice and prevent inappropriate interpretations of the accounting literature in this area. The following discussion provides some background on the issue, and discusses the main elements of SAB 96. The actual text of SAB 96 is accessible on the Commission's website (address above).
Background
APB Opinion No. 16 provides guidance on whether a business combination should be accounted for as a purchase or a pooling. Generally, when cash or other assets are used to effect the combination, purchase accounting is used. In purchase accounting, the combination is accounted for at fair value and goodwill and other intangible assets often are recorded. Amortization of these intangibles is charged to future earnings. In a pooling of interests, the assets and liabilities of the separate entities are combined at their historical cost bases; thus no goodwill and subsequent amortization charges to earnings arise. This explains in part many companies' preference for pooling of interests accounting for business combinations. Furthermore, a company that effects a business combination by issuing shares may want to offset some of the share dilution by reacquiring treasury stock following the business combination. In this regard, APB Opinion No. 16 notes that a direct or indirect agreement to reacquire part of the shares issued to effect the combination, or other arrangements that will benefit a stockholder, "negates the exchange of equity securities," which provides the basis for pooling of interests accounting. The SEC previously has provided guidance in ASR 146 and ASR 146-A on the circumstances when pooling of interests accounting is precluded because of treasury stock transactions.5 Specifically, pooling of interests accounting is precluded if the combination includes a distribution of assets to redeem equity that ultimately results in part cash consideration in the combination. However, the primary focus of the guidance in these releases is on preconsummation treasury stock transactions. While it is noted that significant reacquisitions "closely following" a combination may preclude pooling accounting, little additional guidance existed that clarified how soon after a combination shares could be repurchased and the numbers of shares that could be repurchased without raising questions about the appropriateness of pooling of interests accounting.
Elements of SAB 96
The focus of SAB 96 is whether, and under what conditions, announcements of future purchases of treasury stock would violate certain provisions of APB Opinion No. 16, thereby precluding pooling of interests accounting. SAB 96 provides the staff interpretation on four issues. First, intentions to reacquire treasury stock following the business combination would preclude pooling treatment. Generally planned transactions to reacquire treasury stock within two years of consummation should not exceed 10 percent of the outstanding shares of any of the combining companies. Second, actions prior to and following the consummation of the deal will be considered in assessing whether the company had an intention to reacquire shares in the combination. Actions within six months of consummation are presumed to relate to intentions at the time of the consummation. Announcement of buyback plans and actual repurchases are examples of actions that lead to a presumption that there were intentions to repurchase shares at the time of the combination. Some companies have share repurchase plans in place before the combination (e.g., as part of a capital management plan). The third issue addressed in SAB 96 addresses how such plans affect an assessment of intentions. Specifically, intentions to resume a share buyback plan that would have violated pooling of interests criteria if that plan was executed before consummation, are not viewed any differently than the intention to reacquire shares under a new plan (formulated at the time of the business combination). Finally, SAB 96 notes that since all shares of the same class of stock are fungible, it does not matter who sells the shares (parties directly involved in the combination versus non-participating shareholders) when determining whether a company has reacquired shares issued to effect the combination. The proposed rules on derivative and financial instrument disclosures and the recent SAB on treasury stock acquisitions represent responses by the Commission to disclosure and accounting problems that are designed to result in more immediate improvements in the financial reporting environment. A third recent initiative at the Commission has a decided future orientation with respect to an accounting and reporting issue--the accounting and reporting of intangible assets.
Intangible Asset Symposium
On April 11 and 12, 1996, the SEC sponsored a day and a half symposium on the financial accounting and reporting of intangible assets. A growing sector of the economy is comprised of firms for which the current accounting model does not recognize or measure important assets in the balance sheet or results of certain activities in the period in which the benefits of the expenditures are realized. In may respects, the accounting and reporting of these intangible or "soft" assets is characterized by a tradeoff between the reliability and relevance of information about the activities represented by these items. For example, there can be significant amounts invested by companies in employee and other training, and the development of intellectual capital and research and development (R&D) that are not recognized as assets. For some companies, there can be internally-developed brands, customer loyalty and satisfaction levels that are all unrecorded. However, in each of these instances, reliability of measurements present substantive issues. Because of these concerns, under the current accounting model expenditures for these items typically are treated as a charge to earnings as incurred. The primary focus of this symposium was on the future of reporting. Given the growth trend of activities represented by intangible assets, it was felt that it would be worthwhile to begin a dialogue on these issues to ensure that the financial reporting model is responsive to future demands for information about these activities.
Elements of the Symposium
To further this dialogue, the symposium was comprised of four panels, each of which represented a different financial reporting constituency: (1) a user panel explored the usefulness of current reporting with respect to intangibles, as well as other sources of such information; (2) a preparer panel discussed the nature and types of intangible assets and ways of measuring these assets for internal needs and the challenges to reporting on these activities externally: (3) an academic panel presented the results of recent research on intangible assets, including the market valuation of R&D and customer lists, and a recent study on the measurement and market valuation of customer satisfaction; (4) an accounting regulator and standard-setter panel discussed their experiences developing accounting standards for intangibles. Each panel had some international representation to explore these issues from a non-U.S. perspective. A final round-table discussion among participants in the prior panels reviewed the major issues raised in those sessions, identified areas requiring additional research, and discussed future steps that might be taken to address these issues.
Summary of Discussion
While it is difficult to summarize the entire discussion in this short space, the following themes did emerge from the discussion at the symposium: 1. There was general agreement that this is a timely issue and one that deserves thought and discussion now, in order to maintain the relevance of the financial reporting model. 2. While most agreed that information on these activities is increasingly important, participants representing users, preparers, and regulators raised substantive concerns about expanded recognition of intangibles in the financial statements. These concerns derive primarily from doubts about the reliability of intangible asset measures. 3. Several participants agreed that disclosures about intangible assets could be improved to give financial statement users a better picture of the value of these assets, including some insights into the returns on activities related to intangible assets (e.g., R&D expenditures). 4. Nonetheless, developing standards or rules for reporting on these activities will be difficult, because of the wide range of intangible-related activities, the value of which can vary dramatically across industries and firms. Some participants recommended increased experimentation by preparers to expand and improve disclosures in these areas. The discussion at the symposium contributed to achieving a number of the objectives of the conference by increasing understanding of the scope of activities involving intangible assets, including how companies manage and monitor these activities internally, as well as the nature and extent of financial reporting on these activities. In addition, there was a healthy exchange of views from the perspective of the various reporting constituencies on the issues that need to be addressed to improve reporting on intangible assets. While the Commission currently is not proposing rules in this area, it was hoped that the symposium would provide information to help both the SEC and private sector standard-setters to respond to these issues within the framework of their respective rule-making processes. We are still receiving feedback from participants with respect to where to go from here, in light of the discussion at the symposium. In addition, the staff is assembling a compendium of materials from the conference, including background papers presented and a transcript of the proceedings. These will be made available through the Public Reference Room at the Commission; some materials may be accessible on the Commission's web page.
Summary
This review of three recent developments at the Securities and Exchange Commission provides insights into the various ways that the Commission and its staff address current and evolving financial accounting and reporting issues. Each of these efforts are focused in some way on maintaining or improving the quality of financial reporting as a basis for informed investor decisions. Such efforts reinforce the importance of financial reporting in achieving the overriding objective of the security laws--investor protection.
Endnotes
1 The Securities and Exchange Commission as a matter of policy, disclaims responsibility for any private publications or statements by any of its employees. The views expressed are those of the author, and do not necessarily reflect the views of the Commission or the author's colleagues on the staff.
2 For example, see "Is Corporate Hedging Really Speculation?" Wall Street Journal (July 20, 1995):C1.
3 AICPA Special Committee on Financial Reporting, Improving Business Reporting--A Customer Focus: Meeting the Information Needs of Investors and Creditors (1994), and AIMR, Financial Reporting in the 1990s and Beyond (1993).
4 Group of Thirty. Derivatives: Practices and Principles. (July 1993).
5 SEC Accounting Series Release 146, "Effect of Treasury Stock Transactions on Accounting for Business Combinations (August 24, 1973), and SEC Accounting Series Release 146A, "Statement of Policy and Interpretations in Regard to ASR No. 146 (April 11, 1974). A recent article in the New York Times discusses a transaction that reflects a number of these issues "In Bank Merger, It's a Matter of Accounting." New York Times (December 21, 1995):D1.

CHIEF ACCOUNTANT SELECTS ACADEMIC FELLOW
The Securities and Exchange Commission's Office of the Chief Accountant (OCA) recently selected Professor Robert C. Lipe of the University of Colorado as Academic Accounting Fellow for a one year term beginning August, 1996. Currently, Professor Lipe is an associate professor of accounting in the College of Business Administration at the University of Colorado at Boulder. He received MBA and Ph.D. degrees from the University of Chicago and a BA in accounting from North Carolina State University. Professor Lipe has published numerous articles on how stock prices relate to the information in annual accounting earnings and on the effects of footnote disclosures made in lieu of balance sheet recognition. He serves as Associate Editor for the Journal of Accounting Literature and was formerly an editorial board member of The Accounting Review. At the Commission, the Academic Accounting Fellow serves as a research expertise resource for the Staff by interpreting and communicating extant research materials as they relate to various projects in process or general areas of interest to the SEC. In addition, the Academic Fellow has been assigned to mainstream OCA projects, including rule-making, liaison with the professional accounting standard-setting bodies, and consultation with registrants on accounting and reporting matters. Professor Lipe will replace the current Academic Accounting Fellow, Terry Warfield, who will return to academic duties at the University of Wisconsin in August.

ACADEMIC ACCOUNTING FELLOW SELECTION PROCESS
The AAA's SEC Liaison Committee is working with the SEC's Office of the Chief Accountant in identifying members of the AAA and others interested in spending an upcoming sabbatical or other leave at the SEC as the Academic Accounting Fellow. Please direct applications for the 1997/98 academic year (a letter indicating interest in and reasons for pursuing the Fellowship, along with a current VITA) to Professor Jim Boatsman, Chair, AAA SEC Liaison Committee, Arizona State University. Questions about the program may be directed to Professor Boatsman (602) 965-6616.

NOMINATIONS FOR EDITOR: JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH
The AAA Management Accounting Section is seeking nominations for Editor of their Journal of Management Accounting Research. The incoming editor is expected to serve, starting January 1, 1997, as Editor-Elect for one year and Editor for three years. Please send all nominations (including self nominations) to:
Professor William L. Ferrara, School of Business, Stetson University, DeLand, Florida 32720, Phone: (904) 822-7421, Fax: (904) 822-7426, Internet: Ferrara@suvax1.stetson.edu

RESEARCH CONFERENCE ON ETHICS AND ECONOMIC BEHAVIOR IN ACCOUNTING AND TAXATION
The University of Oklahoma Center for Research in Accounting, in cooperation with the Journal of Accounting and Public Policy, is sponsoring a conference dealing with economic aspects of ethics in accounting and taxation. The conference dates are April 4 and 5, 1997. Papers are to be submitted by August 31, 1996. Submitted papers will be considered simultaneous submissions to the Journal of Accounting and Public Policy. For more information regarding submission guidelines and suggested topics, see the Journal of Accounting and Public Policy, 15 (1), Spring 1996 issue or contact either Frances Ayres or Dipankar Ghosh at The University of Oklahoma (405) 325-4221.

CALL FOR PAPERS: APPLICATIONS OF FUZZY SETS AND THE THEORY OF EVIDENCE TO ACCOUNTING
Papers are invited for the second volume of Applications of Fuzzy Sets and the Theory of Evidence to Accounting (JAI Press, 1997 publication). Topics could include:
* The applications and/or methodological development of fuzzy logic
* Dempster-Shafer models
* Neural networks
* Rough sets to accounting decision making
* Decision making
* Forecasting
* Problem solving and control Please submit:
* Four (4) copies of completed paper
* $45.00 submission fee Authors should follow the Advances in Accounting format. Send all submissions to: Philip H. Siegel, Department of Accounting & Business Law, School of Business Monmouth University, W. Long Branch, NJ 07740-1898, Phone: (908) 571-3430

CALL FOR PAPERS: INTERNATIONAL ACCOUNTING RESEARCH CONFERENCE
The American Accounting Association and the KPMG Peat Marwick Foundation are co-sponsoring a second conference on research addressing international accounting issues. The conference will be held at KPMG Peat Marwick's Quality Institute in Montvale, New Jersey, U.S.A., on Friday and Saturday, March 28-29, 1997. The conference agenda will include presentation and discussion of five competitively chosen research papers and a panel discussion of a current topic in international financial reporting. Papers are invited in all areas of international accounting, including international auditing, tax, financial reporting and managerial accounting. Papers using all research approaches, including analytical, experimental, field study, and archival-empirical approaches, will be considered. The rigor and relevance of the research will be the main criteria in selecting papers for the conference. While copies of all working papers accepted for the conference will be mailed to registrants, no formal proceedings will be published. Papers must be written in English, and must not be under consideration for publication or accepted for publication. Manuscripts should be typed, double-spaced, on one side of the paper only, and authors should follow the "Instructions to Authors" given in The Accounting Review for formatting. Please mail (do not fax) three copies of each paper for review. Only completed manuscripts will be accepted for review; please do not submit abstracts. All papers will be blind reviewed by two reviewers. All travel, lodging and meal expenses for one author of each paper will be reimbursed through the sponsorship of the KPMG Peat Marwick Foundation. To be considered, papers must be received (not postmarked) by October 15, 1996. Papers received after this date will not be considered. Authors will be notified of the decisions on their papers by January 15, 1997.
Send papers to: Professor Gary K. Meek, School of Accounting, College of Business Administration, Oklahoma State University, Stillwater, OK 74078-0555 Attendance is open to experienced international accounting researchers; qualified accounting researchers who have little or no experience with international accounting; nonacademics with international accounting research interests; and selected doctoral students. Information about registration and attendance will be available at a later date.

CALL FOR VOLUNTEERS: REVIEWERS FOR FAR MANUSCRIPTS SUBMITTED TO 1997 AAA ANNUAL MEETING
The Section will need a large number of reviewers to screen financial accounting and reporting manuscripts submitted for the 1997 American Accounting Association Annual Meeting. If you would be willing to serve the Association and the Section in this capacity, please complete the enclosed Referee Volunteer Form and mail or fax it to:

Wayne R. Landsman
Kenan-Flagler Business School
University of North Carolina
Chapel Hill, NC 27599-3490
Phone:  919-962-3221
FAX:  919-962-0054