Wisconsin School of Business

Terry Warfield

Department Chair of Accounting & Information Systems

Professor - Accounting & Information Systems
PwC Professor in Accounting

Terry D. Warfield is the PwC Professor in Accounting at the Wisconsin School of Business. He is also Chair of the Department of Accounting and Information Systems.

Warfield's area of expertise is financial accounting. Prior to his academic career, he worked for five years in the banking industry and from 1995-1996 he served as the Academic Accounting Fellow in the Office of the Chief Accountant at the U.S. Securities and Exchange Commission in Washington D.C. While on the staff, he worked on projects related to financial instruments, financial institutions, and helped coordinate a symposium on intangible asset financial reporting.

Warfield's primary research interests concern financial accounting standards and disclosure policies, including the effects of accounting information and disclosures on securities markets.

He has published articles in various scholarly and practice oriented outlets. He has served on the editorial board of The Accounting Review, Accounting Horizons, and Issues in Accounting Education and has served as a reviewer for many other accounting and business journals. He has served the American Accounting Association on: the Financial Accounting Standards Committee (chair 1995-1996), the Association Council, Nominations Committee, president of the Financial Accounting and Reporting Section (2004-2006), and chair of the Regulations Committee (2007-2008). Warfield was one of three academic members of the Advisory Council to the Financial Accounting Standards Board (2005-2009).

Warfield teaches intermediate and masters-level courses in financial reporting and he has served on numerous Ph.D. dissertation committees.

He has received teaching awards at both the University of Iowa and at UW-Madison, and he has developed several case studies based on his research for use in accounting classes. These cases and related instructional articles have been published in Issues in Accounting Education and the AICPA Professor-Practitioner Case Development Program. Warfield is co-author (with D. Kieso and J. Weygandt) of Intermediate Accounting, (15th Edition), Intermediate Accounting (IFRS Edition), and Intermediate Accounting: Principles and Analysis (2nd Edition).

He received a B.S. and MBA from Indiana University and a Ph.D. from the University of Iowa.
 

Selected Published Journal Articles


Clor Proell, S., Warfield, T., & Proell, C. (2013). The Effects of Presentation Salience and Measurement Subjectivity on Nonprofessional Investors' Fair Value Judgments.
Article AbstractThe purpose of this research is two-fold. First, we examine how nonprofessional investors interpret firms with differences in fair value inputs. Second, we examine how changes to the financial statements, similar to those proposed in the FASB’s financial statement presentation project, affect the interpretation of firms with different fair value inputs. We find that nonprofessional investors view firms with different fair value inputs as having differentially reliable financial statements. Further, we predict and find that when the financial statements contain a column that highlights the effect of changes in fair value on net income, this affects not only how nonprofessional investors interpret firms with different fair value inputs but also affects the P/E multiple that they assign to the firm. Additional analyses examine the intentionality of participants’ responses. Our results are relevant to both the debate about fair value accounting and to the FASB’s financial statement presentation project.
Contemporary Accounting Research, doi: 10.1111/1911-3846.12041.
Warfield, T., & Luo, T. (2012). The implementation effects of expanded consolidation: the case of consolidating special purpose entities.
Article AbstractThis article examines the impact of FASB Interpretation No. 46 (Revised), FIN 46(R), on perceived earnings informativeness of companies with special purpose entities (SPEs). We find that the impact depends on the pre-FIN 46 (R) incentives for using SPEs. The implementation of FIN 46(R) improves perceived earnings informativeness of companies that previously used SPEs less for the manipulation of financial reporting, but does not generate the same improvement for those otherwise. Furthermore, these differential effects are more pronounced when companies reacted to FIN 46(R) by restructuring their SPEs to keep them off financial statements. Key words: Expanded consolidation; Implementation effects; Special purpose entities JEL classification: M41 doi: 10.1111/
Accounting and Finance, On-Line (28 pages). doi: 10.1111/acfi.12004.
Dickinson, V., Kimmel, P., & Warfield, T. (2012). The Accounting and Market Consequences of Accelerated Share Repurchases.
Article AbstractWe evaluate the representational faithfulness of the accounting treatment of a recent and well-established type of structured transaction—accelerated share repurchases (ASRs). ASRs are popular because accretive earnings per share benefits are recognized immediately, while any gains or losses on the forward contract used to execute an ASR bypass income, and are reported directly in equity. We document lower value relevance for the liabilities of ASR companies compared with a size- and industry-matched sample. ERC tests also indicate a market discount for the earnings of ASR companies compared with the control sample. Finally, we document significant abnormal returns to a trading strategy based on unrealized gains or losses on ASR transactions. Our results indicate that the current accounting for ASRs does not result in representative reporting of these transactions. As a result, financial statement users might benefit from recognition of ASR elements in financial statements.
Review of Accounting Studies (17), 41-71. doi: 10.1007/s11142-011-9162-7.
Cheng, Q., Warfield, T., & Ye, M. (2011). Equity incentives and earnings management: Evidence from the banking industry.
Article AbstractWe examine the relationship between equity incentives and earnings management in the banking industry. By focusing on this regulated industry and using industry-specific earnings management proxies, we provide evidence on the impact of regulation on earnings management arising from CEOs' equity incentives. We find that bank managers with high equity incentives are more likely to manage earnings, but only when capital ratios are closer to the minimum regulatory capital requirements. This finding indicates that in the banking industry, potential regulatory intervention induces, rather than mitigates, earnings management arising from equity incentives.
Journal of Accounting, Auditing and Finance (26), 317-349. doi: 10.1177/0148558X11401219.
Kohlbeck, M., & Warfield, T. (2010). Accounting Standard Attributes and Accounting Quality. Research in Accounting Regulation (22), 59-70. doi: 10.1016/j.racreg.2010.07.001.
Cheng, Q., & Warfield, T. (2005). Equity incentives and earnings management. The Accounting Review (80), 441-476. doi: 10.2308/accr.2005.80.2.441.
Skaife, H., & Warfield, T. (2003). Audits as a Corporate Governance Mechanism: Evidence from the German Market. Journal of International Accounting Research (2), 1-21. doi: 10.2308/jiar.2003.2.1.1.
Cheng, Q., Frischmann, P., & Warfield, T. (2003). The market perception of corporate claims. Research in Accounting Regulation (16), 3-28.

Presentations


Accounting Research Workshop ( 2013 ) The Relevance and Faithful Representation of Pension Measurements

Accounting Research Workshop ( 2011 ) IFRS: Convergence and More

Accounting Research Workshop ( 2011 ) IFRS Convergence

AAA Annual Meeting ( 2010 ) Use of Technology in On-Line Forums

Accounting Research Workshop ( 2009 ) The Accounting Consequences of Accelerated Share Repurchases

Accounting Research Workshop ( 2009 ) The Accounting Consequences of Accelerated Share Repurchases

Accounting Research Workshop ( 2009 ) The Accounting Consequences of Accelerated Share Repurchases


Undergraduate Courses


Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2002.

Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2003.

Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2004.

Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2005.

Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2001.

Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2001.

Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2001.

Professional Practice Issues in Accounting and Auditing
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(ACC 601), Spring 2006.

Professional Issues
Course DescriptionStudy of current accounting and audit issues within a case context. Students will be required to perform computerized research, analyze topical accounting and audit issues, and make case presentations. Intensive three week course to build on experiences developed during the internship program.
(AIS 601 Section 1), Spring 2007.

Reading & Rsch-Accounting
Course DescriptionReading and Research-Accounting
(AIS 399 Section 85), Spring 2008.

Bus Fund for Non-Bus Majors I
Course DescriptionPart of a two course sequence introducing non-business students to basic concepts, practices and analytical methods that are part of the market enterprise system. This course is a basic overview on: accounting, finance, and business law.
(BUS 310 Section 1), Fall 2010.

Fundamentals of Accounting and
Course DescriptionPart of a two course sequence introducing non-business students to basic concepts, practices and analytical methods that are part of the market enterprise system. This course is a basic overview on: accounting, finance, and business law.
(BUS 310 Section 1), Fall 2011.

Financial Reporting II
Course DescriptionExamines current and emerging financial accounting theory and techniques used to measure and report financial information to investors, creditors, and other external users, including dilutive securities, investments, revenue recognition, income tax allocation, pensions, leases and accounting changes.
(ACC 302), Fall 2003.

Financial Reporting II
Course DescriptionExamines current and emerging financial accounting theory and techniques used to measure and report financial information to investors, creditors, and other external users, including dilutive securities, investments, revenue recognition, income tax allocation, pensions, leases and accounting changes.
(AIS 302 Section 2), Spring 2008.

Introduction to Business
Course DescriptionIntroduction to the basic concepts, practices and analytical methods that are part of the market enterprise system. Overview of the basic functions: management, accounting, finance, operations, and marketing conducted within a social and ethical framework.
(BUS 100 Section 1), Fall 2009.

Introduc tory Accounting
Course DescriptionIntroduction to Financial Accounting - Required course for all students in WI School of Business. I serve as course coordinator and oversee 3 TAs, who lead lectures.
(ACC/ACC 100), Spring 2013.

Introductory Accounting
Course DescriptionIntroduction to Financial Accounting - Required course for all students in WI School of Business. I serve as course coordinator and oversee 18 TAs, who lead lectures.
(ACC/ACC 100), Fall 2013.



Graduate Courses


Smr:Financial Reporting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(ACC 770 Section 1), Fall 2008.

Smr:Financial Reporting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(ACC 770 Section 2), Fall 2008.

Seminar in Financial Accounting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(ACC 770), Fall 2005.

Seminar in Financial Accounting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(ACC 770), Fall 2005.

Seminar in Financial Accounting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(AIS 770), Fall 2006.

Seminar in Financial Accounting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(AIS 770), Fall 2006.

Financial Reporting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(AIS 770 Section 1), Fall 2007.

Financial Reporting Theory
Course DescriptionIntensive study and critical examination of accounting theories, concepts and standards; evaluations of the pronouncements of professional societies and governmental agencies.
(AIS 770 Section 2), Fall 2007.



Combined Undergraduate & Graduate Courses


Financial Reporting II
Course DescriptionExamines current and emerging financial accounting theory and techniques used to measure and report financial information to investors, creditors, and other external users, including dilutive securities, investments, revenue recognition, income tax allocation, pensions, leases and accounting changes.
(ACC/ACC 302/702 Section 2), Fall 2008.

Financial Reporting II
Course DescriptionExamines current and emerging financial accounting theory and techniques used to measure and report financial information to investors, creditors, and other external users, including dilutive securities, investments, revenue recognition, income tax allocation, pensions, leases and accounting changes.
(ACC/ACC 302/702), Fall 2001.

Financial Reporting II
Course DescriptionExamines current and emerging financial accounting theory and techniques used to measure and report financial information to investors, creditors, and other external users, including dilutive securities, investments, revenue recognition, income tax allocation, pensions, leases and accounting changes.
(ACC/ACC 302/702), Fall 2004.

Financial Reporting II
Course DescriptionExamines current and emerging financial accounting theory and techniques used to measure and report financial information to investors, creditors, and other external users, including dilutive securities, investments, revenue recognition, income tax allocation, pensions, leases and accounting changes.
(AIS/AIS 702/302 Section 1), Fall 2010.

Financial Reporting II
Course DescriptionExamines current and emerging financial accounting theory and techniques used to measure and report financial information to investors, creditors, and other external users, including dilutive securities, investments, revenue recognition, income tax alloca
(AIS/AIS 302/702 Section 1), Fall 2011.



Learning/Teaching Oriented Publications


Kieso, D., Weygandt, J., & Warfield, T. (2013). Intermediate Accounting, 15th Edition. , 1557.
Dickinson, V., Kimmel, P., & Warfield, T. (2011). Bioscience Company: Accounting for Idle Plant Assets. Issues in Accounting Education (26), 155-162. doi: 10.2308/iace.2011.26.1.155.
Kieso, D., Weygandt, J., & Warfield, T. (2011). Intermediate Accounting, 14th Edition.
Kieso, D., Weygandt, J., & Warfield, T. (2010). Intermediate Accounting: IFRS Edition.
Kimmel, P., & Warfield, T. (2008). Accelerating Corporate Performance: Stock Buy Backs with Zip. Issues in Accounting Education (23), 117-126. doi: 10.2308/iace.2008.23.1.119.
Warfield, T., Skaife, H., & Johnstone, K. (2002). Effects of Repeated Practice and Contextual Writing Experiences on College Students' Writing Skills. Journal of Educational Psychology (94), 305-315. doi: 10.1037/0022-0663.94.2.305.

Editorial and Reviewing Activities


Accounting Horizons - January 2013 - December 2013
Ad Hoc Reviewer

- March 2012 - July 2012
Invited Manuscript Reviewer

Accounting Horizons - Since December 2008
Associate Editor


Photograph of Terry Warfield

Terry Warfield

Department Chair of Accounting & Information Systems
 
Professor | Accounting & Information Systems
PwC Professor in Accounting
(608) 262-1028
4117B Grainger Hall