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The purpose of this study is to evaluate the impact of ASU 2016–01 on the predictive value, the confirmatory value and the value relevance of earnings. One of the key provisions of ASU 2016–01 is the requirement that all changes in unrealized gains and losses on all equity securities are recognized in income instead of other comprehensive income (OCI) as under prior guidance (SFAS 115). Because many companies in the insurance industry are large holders of equity securities, the sample for this study consists of firms from the insurance industry.

The author compares the change in earnings volatility and analysts’ forecast error for the periods before and after adoption of ASU 2016–01, and the relationship between the percentages of assets invested in equity securities for both earnings volatility and analysts’ forecast error. Further, the author tests the price reaction at the time of the release of earnings using an event study. The author also tests the value reliance of earnings measured by the correlation of earnings and stock prices, as well as the change in earnings and stock returns. The association between investment gain/loss components of earnings, and OCI, with stock prices and returns is tested for value relevance.

The findings of this study show that earnings volatility and analysts’ forecast errors increased in the period after adopting ASU 2016–01 and an initial overreaction to earnings releases. Further, the investment gain/loss components of earnings and OCI are not value-relevant in this study and including unrealized gains/losses on equity securities in income decreased value relevance of earnings in the post-adoption period, particularly for firms with large equity investment portfolios.

This study is limited to one industry and only represents the impact of ASU 2016–01 on that industry. Thus, there are opportunities to extend the research to other industries. Furthermore, the time-period of study since adopting ASU 2016–01 is limited to only two years and with the passage of time, a greater sample of post-ASU 2016–01 will be available for testing.

Standard setters considering recognizing fair value changes on all investment securities in income should consider the findings of this study. Further, industry participants affected by ASU 2016–01 should consider improving explanation of earnings to mitigate the initial misunderstanding of earning announcements found in this study.

To the best of the author’s knowledge, this is the first study on the effects of ASU 2016–01 on volatility of earnings, earnings forecast errors, market reactions to earnings releases and the value relevance of earnings. This paper fills a gap in prior research by studying the effects of fair value on reported earnings, which is limited in prior research. This study contributes to the growing field of research on fair value accounting.

This study investigates the implementation challenges and economic consequences of the International Financial Reporting Standards 9 (IFRS 9) Financial Instruments.

Descriptive evidence on equity asset reclassifications and estimated impairment using the new expected credit loss (ECL) model are presented. Multivariate analyses on the disposal of available-for-sale (AFS) and fund investment post-announcement and the value relevance of impairments to financial assets post-implementation are performed.

Over 60% of sample firms report inconsistent equity asset reclassifications and do not change estimated impairment using the new expected credit loss model. Firms also switch from AFS to equity fund investments post-announcement. Lastly, impairments to financial assets increase in value relevance to investors’ post-implementation, but only in financial institutions and firms with Big 4 auditors.

This study's findings suggest that IFRS 9 presents implementation challenges and changes equity investment strategies. They also indicate cross-sectional differences in firms' ability to effectively apply the new standards. This study is valuable for policymakers, business leaders, investors and academics.

This case uses an array of carefully selected and excerpted revenue recognition related information contained in Salesforce.com's January 31, 2019, 10-K. Maria, the fictional protagonist, is seeking to understand those disclosures as part of her preparation for an upcoming job interview with the company. As such, she is relying on those disclosures to provide insights as to the company's main product/service lines, the events that signal when and how much revenue the company has earned (i.e., the essence of its business model), along with the related official generally accepted accounting principles (GAAP) criteria pertinent to the valuing and timing of recorded revenues.

The purpose of this paper is to examine the impact of greater reporting prominence of translation results following Accounting Standard Update (ASU) 2011-05 on net investment (NI) hedging practice. The authors investigate the role of increased transparency on the decision to engage in NI hedging (participation), the degree of NI hedging (level) and the hedging vehicle choice.

This paper uses the Heckman two-stage procedure (Heckman, 1979) in the hedging choice analysis. In the first stage, the authors model the participation decision as a function of reporting transparency, translation results and other control variables. In the second stage, the authors include the Inverse Mills ratio from the first stage Probit to examine both the level and vehicle choice decisions.

When translation is reported more prominently, the authors find an increase in the level of NI hedging and a greater likelihood of debt as the hedging vehicle, but no evidence firms are more likely to hedge. Regardless of where translation results are reported, firms facing ongoing translation losses are more likely to hedge.

This paper examines S&P 500 firms in the years surrounding the effective date of ASU 2011-05. The findings suggest managers respond to the increase in reporting transparency by increasing hedging for long-term risk management purposes, supporting accounting authorities’ efforts to promote other comprehensive income information transparency. The results should hold for comparable firms with similar currency exposure, size and visibility, but may not apply to smaller firms with limited translation exposure. As only about a quarter of firms with translation exposure engage in NI hedging, the primary results are based on a relatively limited number of firms.

To the best of the authors’ knowledge, this is the first study that examines NI hedging behavior changes following ASU-2011-05. Second, the authors are the first to explore why firms are almost equally split between derivatives and debt as their exclusive hedging vehicle.

This paper aims to examine the impact on firm financial distress by industry of one of the most recent accounting changes in the treatment of operating leases, Financial Accounting Standard Board (FASB) Accounting Standards Update (ASU) No. 2016–02, Leases released February 25, 2016. ASU 2016–02, also known as ASC 842, considerably changed how firms account for operating leases.

The authors use the Black–Scholes–Merton (BSM) option pricing methodology to estimate the change in default likelihood (DL) of nine different industries surrounding the adoption of ASC 842. In addition, the authors use univariate and multivariate analysis to test the statistical significance of firm-related factors.

The authors provide evidence that numerous industry’s DL increased following the FASB’s announcement of the new standard (ASC 842) regarding increased transparency in lease recognition. The effect is especially significant within the energy industry, although it is also shown in the consumer durables, manufacturing, hi-tech equipment, telecom, retail and wholesale and transportation industries. In addition, the authors find the effect is more pronounced for firms with high leverage, low financial slack, low operating return on assets, small market value and accounting for non-balance sheet recorded leases.

By investigating different industries, this study’s findings provide crucial insight to managers seeking lease financing as an operational strategy in a post-implementation environment and help them understand the impact of this new standard on their firm. Furthermore, this study answers the call of policy makers and academics to provide insight into the impact of updated leasing standards.

This is the only empirical study that examines the impact of ASC 842 on the DL of publicly traded firms by industry.

This paper aims to investigate student experiences and the potential impact of experience-based learning (EBL) in the early phase of graduate sustainability programs through the lens of key competencies. The goal is to provide evidence for the improvement of existing and the thorough design of new EBL formats in sustainability programs.

This comparative case study focuses on the first semester of three graduate sustainability programs at Leuphana University of Lüneburg, Germany and Arizona State University, USA, for two of which EBL was a core feature. The study compares the curricula, the teaching and learning environments and the reported experiences of one student cohort from each of three programs and synthesizes the resulting insights. Student interviews were combined with student self-assessments and supported by in-vivo observations, curriculum designer input, instructor interviews and course materials. MAXQDA was used for data analysis following a grounded theory approach.

EBL influences students’ reflective capacity, which impacts the development of key competencies in sustainability. Qualitative analysis found four key themes in relation to the students’ learning in EBL settings, namely, discomfort, time-attention relationship, student expectations of instructors and exchange. The intersection of these themes with curricular structure, student dispositions and differing instructor approaches shows how curriculum can either support or interrupt the reflective cycle and thus, holistic learning.

With the focus on the first semester only, the students’ competence development over the course of the entire program cannot be demonstrated. Learning processes within EBL settings are complex and include aspects outside the control of instructors and curriculum designers. This study addresses only a select number of factors influencing students’ learning in EBL settings.

Early engagement with EBL activities can push students to leave their comfort zones and question previous assumptions. Designing curricula to include EBL while encouraging strong intra-cohort connections and creating space for reflection seems to be an effective approach to enable the development of key competencies in sustainability.

This paper investigates the experiences of students in EBL through a key competence lens. The study combines student self-perceptions, instructor reflections and in-vivo observations. Data collection and analysis were conducted by a researcher not affiliated with the programs. These factors make for a unique study design and with data-driven insights on the seldom researched competence-pedagogy-curriculum connection.

This research examined the factors affecting several types of student engagement, namely agentic, behavioral, emotional and cognitive engagement. Specifically, it examined the effect of e-learning system usability on student engagement and explored teacher behavior's possible intervening impact on this relationship.

Data were collected from 418 students studying at different specializations at Omani private academic institutions. This study employed a quantitative methodology and utilized the Smart-PLS for data analyses.

The findings showed that e-learning system usability influenced significantly and positively agentic, behavioral and cognitive engagement. However, the link between e-learning system usability and emotional engagement was not significant. Moreover, teacher behavior mediated the relationship between e-learning system usability and the four types of engagement.

This study improves one’s understanding of how the interaction of e-learning system usability and teacher behavior affects several aspects of student engagement. It also helps higher education administrators and policymakers by exploring the influential effects of e-learning systems usability and teacher behavior on facilitating students' engagement.

This research explores the effect of e-learning Moodle-based system usability on students' learning outcomes with the possible intervening role of teacher's behavior and online engagement.

In this research, the authors followed a quantitative methodology and a deductive research approach. Data were collected from 433 students at different study levels and academic specializations in higher education institutions (HEIs) in Oman. The data have been analyzed using partial least squares structural equation modeling via Smart-PLS.

The findings of this research show that e-learning system usability affects students' learning outcomes. Moreover, the relationship between these two variables is mediated by teacher behavior and students' online engagement.

This study is important as it adds to the understanding of the role of e-learning system usability in predicting student outcomes. From practical perspectives, especially during the spread of the COVID-19 pandemic, this study also helps practitioners at private HEIs use e-learning systems more efficiently and effectively to improve students' engagement and learning outcomes.

The purpose of the chapter is to develop a typology of bad behaviors characteristic of governing boards and to compare the bad behaviors identified in the typology to the governing boards’ expected roles and responsibilities. Several examples of bad governing board behaviors that have occurred at historically Black colleges and universities (HBCUs) are explored through the lens of the typology. The author argues that the bad behavior of governing boards responsible for the nations’ HBCUs inhibits strategic planning, undermines growth and development, and threatens the long-term viability of these institutions. Finally, recommendations intended to minimize the impact of bad board behaviors are proposed.