Daniel Thornton

Daniel Thornton is Professor Emeritus of Financial Accounting at the Stephen J. R. Smith School of Business, Queen’s University.

Thornton is one of a handful of professors to have received both the Distinguished Contribution to Accounting Thought Award (for research) and the Outstanding Educator Award (for teaching) from the Canadian Academic Accounting Association.

During his 46-year academic career, he held the Chartered Accountants of Ontario Professorship at Queen's, held the Chartered Accountants of Alberta Professorship at the University of Calgary, and served as Professor of Accounting at the University of Toronto. He published extensively in the area financial accounting, serving as an editor of The Accounting Review (the journal of the American Accounting Association) and Contemporary Accounting Research (the journal of the Canadian Academic Accounting Association).

A Fellow of the Institutes of Chartered Accountants of both Ontario and Alberta, Thornton is one of a handful of professional accountants to have received fellowships (FCA, FCPA) from more than one provincial institute of CPAs. These dual fellowships recognize that his research and teaching reflect a close association with colleagues in practice as well as academia.

He served as a voting member of the Canadian Accounting Standards Board and, a decade later, a voting member of the Accounting Standards Oversight Council, which appoints and oversees the Board.

During an administrative leave from Queen’s, he served as a full-time Professional Accounting Fellow at the United States Securities and Exchange Commission in Washington, DC. He also served as a member of the Minister of National Revenue's Offshore Compliance Advisory Committee.

He has provided extensive expert accounting testimony to various courts in Canada and the United States, as well as to the Senate of Canada. He continues to testify periodically.

National Awards from the Canadian Academic Accounting Association (CAAA)

• 1989 - Outstanding Educator Award (“L.S. Rosen Award”)
  
• 1987 - Distinguished Contribution to Accounting Thought (later named the “Haim Falk Award”)

Professional Fellowships and Awards

• 2017 - Elected Life Member, Chartered Professional Accountants of Ontario and Alberta
  
• 2005-2017 - Chartered Accountants of Ontario Professorship in Financial Accounting
  
• 2001-2005 - Distinguished Faculty Fellowship, Queen’s School of Business
  
• 1995/2015 - FCA (Fellow of the Chartered Accountants) Alberta 1995. FCPA 2015
  
• 1994/2012 - FCA (Fellow of the Institute of Chartered Accountants) Ontario 1994. FCPA 2015
  
• 2009-15 - Associate Fellow, CIRANO (Center for Interuniversity Research and Analysis on Organizations)
  
• 2004 - Distinguished Service Award, Institute of Chartered Accountants of Alberta
  
• 2000-2001 - Professional Accounting Fellow. United States Securities and Exchange Commission, Washington DC
  
• 1989-93 - Chartered Accountants of Alberta Professorship in Accounting, University of Calgary
  

Other Awards

• 2014 - Supervisor of Outstanding Business Thesis, Queen’s School of Graduate Studies
  
• 2012 - Best Paper – Administrative Sciences Association of Canada Annual Conference
  
• 2009 - Best Article – American Accounting Association (Journal of International Accounting Research)
  
• 2007 - Nominee – Award for Excellence in Graduate Supervision, Queen’s University
• 1999 - Best Paper – 11th Asian Pacific Conference on International Accounting Issues, Melbourne, Australia
  
• 1997 - Queen’s School of Business Research Excellence Award
• 1995 - Queen’s Professor Student Life Award (Teaching award given by the graduating class to the professor who has contributed most to undergraduate student life over the four years of the Bachelor of Commerce Program)
  
• 1976-78 - Seagram’s Business Faculty Award for doctoral studies
  

Publications

Expert testimony in financial accounting and financial transactions

Senate of Canada – Summoned to present:
* “Financial Reporting Quality: Implications of Accounting Research” (‹‹Qualité de l’information financière: incidences de la recherche comptable››). Testimony before the Senate Standing Committee on Banking, Trade, and Commerce, Study on the State of the Domestic and International Financial System. May 29, 2002.
* Extensively cited in the Report of the Standing Senate Committee on Banking, Trade and Commerce, Navigating Through “The Perfect Storm”: Safeguards to Restore Investor Confidence. The Honorable E. Leo Kolber, Chair.

• Deposition re: The Trustees of the Drywall Acoustic Lathing and Insulation Local 675 Pension Fund and Royce Lee v. Barrick Gold Corporation. Expert report and deposition re: asset impairment and contingent liabilities under US GAAP and International Financial Reporting Standards (IFRS). April 2019.

• Arbitration Proceeding: Expert testimony for MasTec, Inc., a US company, regarding the use of Canadian Accounting Standards for Private Enterprises (ASPE) in the construction industry. June 2018.

• George Weston Limited v. Her Majesty The Queen. Tax Court of Canada No. 2011-3489 (IT) G. Expert testimony for George Weston Limited regarding consolidations, foreign currency translation, and hedge accounting (using derivative financial instruments – cross currency basis swaps) for investments in international operations. Toronto, Canada, August 2014. Judgment in favor of Weston February 19, 2015.

• Hudson’s Bay Company Luxembourg v. JZ LLC and AGZ LLC. Expert testimony for the Defendants (JZ) re: accounting for inventory under an issued-but-not-yet-effective standard in Canadian generally accepted accounting principles. County Court, Wilmington, Delaware, USA, June 2012. Judgment in favor of the defendants, March 11, 2013.

• Allan McLarty (Appellant) v. Her Majesty The Queen. Tax Court of Canada No. 98-1659 (IT) G. Expert testimony for the Crown re: accounting for an oil and gas venture under the Full Cost Method. Calgary, Canada, June 2012. Judgment in favor of McLarty, June 2014.

• Richard Mandeville, Wismar Greaves, Marcus Jordan and Anthony Bowen (Plaintiffs) v. The Manufacturers Life Insurance

• Company (Defendant). Ontario Superior Court of Justice Court File No. 01-CV-221418CP. Toronto, Canada, March 2012. Expert testimony for the Plaintiffs as to whether participating policyholders were characterized as owners of the company for accounting purposes prior to a demutualization transaction. Judgment for the defendants 2012.

• Deposition re: Howard Green and Anne Bell (Plaintiffs) v. Canadian Imperial Bank Of Commerce, Gerald McCaughey, Tom Woods, Brian G. Shaw and Ken Kilgour (Defendants). Ontario Superior Court of Justice Court File No. CV-0800359335-0000. October 2011. Expert testimony for the Defendants regarding accounting for the fair values of derivatives and other financial instruments, and related disclosures. Class action not certified.

• Bombardier Inc. v. Her Majesty The Queen Tax Court of Canada No. 2008-1624 (IT) G. Expert testimony for the Crown re: the accounting character of advances on long-term construction contracts for purposes of capital tax. September 2010. Judgment in favor of Bombardier.

• Jeffery and Rudd (Plaintiffs) v. London Life Insurance Company et al. (Defendants), McKittrick (Plaintiffs) v. Great West Life Assurance Company et al. (Defendants). Class Action, 2009. Expert testimony for the Plaintiffs regarding the application of the accounting definitions of assets and liabilities, with respect to transfers between participating policyholders’ accounts and shareholders’ accounts. Judgment ($450 million) in favor of the plaintiffs October 1, 2010. Upheld on appeal October 2011.

• The Toronto-Dominion Bank v. Her Majesty The Queen 2009 – Tax Court of Canada No. 2006-2996 (IT) G. Expert testimony for the Crown re: Accounting and finance issues relating to inter-corporate dividends paid to multiple classes of shares. October 2009. Judgment in favor of the Crown.

• Inco Limited v. Her Majesty The Queen 2006. Tax Court of Canada No. 2005-4283(IT) G, 2006-177 (IT) G.

• Expert testimony for the Crown re: inclusion of executive stock options in taxable capital. October 2006. Judgment in favor of the Crown 2010.

• Syncrude Canada Limited Arbitration 2004. Expert testimony for Syncrude on the role of Generally Accepted Accounting Principles in calculating royalty payments to the Crown related to operations in the Alberta Tar Sands. Judgment in favor of Syncrude re: accounting issues.

• Trom Electric Co. Ltd. v. Her Majesty The Queen Tax Court of Canada No. 2000-2619 (IT) G, 2004. Expert testimony for the Crown re: Revenue recognition in construction contracts; retroactive restatement of income. Judgment in favor of Trom.

• Henry Bernick v. Her Majesty The Queen Tax Court of Canada No. 97-3429 (IT)G, 2003. Expert testimony for the Crown re: Use of international accounting principles in determining Canadian taxable income; representational faithfulness of accounting income. Judgment in favor of the Crown.

• Minto Developments v. Her Majesty The Queen Tax Court of Canada No. 97-3429 (IT)G, 1999. Expert testimony for the Crown re: Measurement of reserves. Judgment in favor of Minto.

• Canadian Pacific Limited v. Her Majesty The Queen 98 DTC 2021, 1998. Expert testimony for the Crown re: Use of financial derivatives to alter the timing and character of taxable income. Judgment in favor of the Crown.

• Westside Cemeteries v. Her Majesty The Queen Federal Court of Canada T-2205/7-87, 2000. Expert testimony for the Crown re: Measurement of reserves. Judgment in favor of Westside.

• Friedberg v. Her Majesty The Queen 92 DTC 6031, 1986. Expert testimony for the Crown re: Use of commodity derivatives (gold straddles, i.e., futures contracts) to alter the timing and character of income. Judgment in favor of Friedberg.

Research — publications in refereed journals

• Thornton, “Canadian Financial Reporting Institutions.” Accounting Perspectives Vol. 17, Issue 1, March 2018, pp. 89-107.

• Boland, M. and Thornton, “Pricing in Auction Markets for Collectibles: Theory and Experimental Evidence.” Journal of Behavioral Finance and Economics Vol. 5, Issue 1&2, 2015-16, pp. 1-34.

• Thornton, “Different Conceptual Accounting Frameworks for Public and Private Enterprises: Commentary on the 2011 Canadian Experiment and Suggestions for International Empirical Work.” Accounting Perspectives Vol. 14, No 3, Fall 2015, pp. 168-189.

• Verriest, A, A. Gaeremynck, and Thornton, “The Impact of Corporate Governance on IFRS Adoption Choices.” European Accounting Review Vol. 22, Issue 1, May 2013, pp. 39-77.

• He, L. and Thornton. “The Impact of Disclosures of Internal Control Weaknesses and Remediations on Investors’ Perceptions of Earnings Quality,” Accounting Perspectives. Vol. 12, No. 2, June 2013, pp. 101-139.

• Thornton, “Green Accounting and Green Eyeshades Twenty Years Later.” Critical Perspectives on Accounting 24 (2013), pp. 438-442.

• Thornton, “Green Accounting and Green Eyeshades Twenty Years Later: Rejoinder to Critics.” Critical Perspectives on Accounting 24 (2013), pp. 474-476.

• Liu, Z., Thornton, and Fayez A. Elayan, F. “Litigation Risk, the Market-to-Book Ratio, and Conservatism in Financial Reporting.” International Journal of Finance and Accounting Studies (Australia). Vol. 1, No. 1, April 2013, pp. 1-17.

  • Best Paper Award, Canadian Association of Administrative Sciences Annual Conference, 2012.

• Thornton, “Review of ‘Business Models in Accounting: The Theory of the Firm and Financial Reporting’.” The Accounting Review, March 2012, pp. 712-713.

• Pae, J. and Thornton, “The Association between Accounting Conservatism and Analysts’ Forecast Inefficiency.” Asia-Pacific Journal of Financial Studies. Vol. 39, No. 2, April 2010, pp. 171-197.

• He, L, R. Labelle, C. Piot, and Thornton, “Board Monitoring, Audit Committee Effectiveness, and Financial Reporting Quality: Review and Synthesis of Empirical Evidence,” Journal of Forensic and Investigative Accounting. July 2009.

• Top-Ten List of Downloads on Social Science Research Network, Forensic Accounting, 2012; 3,258 downloads through Sept 2017.

• Pae, J., D. Thornton, and M. Welker, “Agency Cost Reduction Associated with EU Financial Reporting Reform,” Journal of International Accounting Research (“JIAR”) Vol. 7 No. 1, Spring 2008, pp. 51-75.

  • JIAR Best Manuscript Award, American Accounting Association, 2009

• Pomeroy, B. and Thornton, “Meta-Analysis and the Accounting Literature: The Case of Audit Committee Independence and Financial Reporting Quality” European Accounting Review Vol. 17, Issue 1, March 2008, pp. 80-106.

• Thornton, “Regulating Canadian Financial Reporting: Issues of Endogeneity and the Coase Theorem” Accounting Perspectives Vol. 6 (3) August 2007, pp. 269-278.

• He, L., Labelle, R., Piot, C., et Thornton D., « Gouvernance et qualité de l’information financière, Deuxième Partie. » ("Governance and Financial Reporting Quality, Part Two") Gestion, revue internationale de gestion Vol. 30 No. 4 (hiver 2006) pp. 27-32.

• He, L., Labelle, R., Piot, C., et Thornton « Gouvernance et qualité de l’information financière, Première Partie. » ("Governance and Financial Reporting Quality, Part One") Gestion, revue internationale de gestion Vol. 30 No. 3 (automne 2005) pp. 28-40.

• Labelle, R. et Thornton. « Quand on confond gouvernance et comptabilité » ("When Governance is Mistaken for Accounting"). Gestion, revue internationale de gestion Vol. 30 No. 3 (automne 2005) pp. 10-12.

• Pae, J., Thornton, and Welker, M. “The Link between Earnings Conservatism and the Price-to-Book Ratio” Contemporary Accounting Research Vol. 22 No. 3 (Fall 2005) pp. 693-717.

• Webster, E. and Thornton “Earnings Quality under Rules- vs. Principles-Based Accounting Standards: A Test of the Skinner Hypothesis” Canadian Accounting Perspectives Vol. 4 No. 2 (Fall 2005) Special Issue in Honor of Ross M. Skinner, pp. 167–92.

• Thornton, “Discussion of ‘Evidence on the Efficacy of Interest Rate Risk Disclosures by Commercial Banks’.” The International Journal of Accounting 39 (3) 2004, pp. 257-262.

• Thornton and Welker, M. “The Effect of Oil and Gas Producers’ FRR No. 48 Disclosures on Investors’ Risk Assessments.” Journal of Accounting, Auditing & Finance (New York University) (Winter 2004) pp. 85-114.

• Bodurtha, J. Jr. and Thornton “FAS 133 Option Fair Value Hedges: Financial-Engineering and FinancialAccounting Perspectives.” Journal of Derivatives (Fall 2002) pp. 62-79.

• Linsmeier, T., Thornton, Venkatachalam, M., & Welker, M. “The Effect of Mandated Market Risk Disclosures on Trading Volume Sensitivity to Interest Rate, Exchange Rate and Commodity Price Movements.” The Accounting Review (April 2002) pp. 343-377.

• Commentary on “Competition and Big-Six Brand Name Reputation: Evidence from the Municipal Audit Market,” Contemporary Accounting Research vol. 18, No. 1 (Spring 2001) pp. 101-105.

• Macintosh, N., Shearer, T., Thornton & Welker, M. “Financial Accounting as Simulacrum and Hyperreality: Perspectives on Income and Capital,” Accounting, Organizations and Society (January 2000) pp. 13-50.

  • Reprinted (abridged) in N. Macintosh and T. Hopper, Accounting, the Social and the Political, Amsterdam: Elsevier 2005, pp. 324-339.

• Warsame, H. and Thornton “Interaction of Tax Planning and Financial Reporting: Reaction of Canadian Corporations to the Taxation of Preferred Dividends,” Asia Pacific Journal of Taxation (Dec. 1999) pp. 37-58.

  • Vernon K. Zimmerman Best Paper Award, 11th Asian Pacific Conference on International Accounting Issues, Melbourne, Australia, November 1999.
    

• Li, Y., Richardson, G., and Thornton “Corporate Disclosure of Environmental Liability Information: Theory and Evidence,” Contemporary Accounting Research (Fall 1997) pp. 435-474. Discussion by J. S. Hughes, pp. 475480.

• “Managerial Tax Planning: Principles and Applications - Part II,” Asia Pacific Journal of Taxation (Summer 1997) pp. 88-98.

• “Managerial Tax Planning: Principles and Applications - Part I,” Asia Pacific Journal of Taxation (Spring 1997) pp. 49-69.

  • Two articles above are reprinted in S.R. James, ed., Taxation: Critical Perspectives on the World Economy. London and New York: Routledge 2002, Volume IV, pp. 119-155.
    

• “What Does It Mean? What Next? Commentary on and Meta-Analysis of the CAAA Study on the State of Accounting Education,” Contemporary Accounting Research (Fall 1994) pp. 181-185.

• Boyle, P. and Thornton “Leases as First, Second and Third Best Contracts,” Asia Pacific Journal of Accounting (December 1994) pp. 45-60.

• “Accounting Options: A Proposal and a Field Study,” Accounting Enquiries (February 1992) pp. 215-232.

• Brown, G., Collins, R., and Thornton “Professional Judgment and Accounting Standards,” Accounting, Organizations and Society 18 (4) (May 1993) pp. 275-289.

• Thornton and Moore, G. “Auditor Choice and Audit Fee Determinants,” Journal of Business Finance and Accounting 20 (3) (April 1993) pp. 333-349.

• Commentary on “Fringe Benefits and Employee Expenses: Tax Planning and Neutral Tax Policy,” Contemporary Accounting Research (Fall 1992) pp. 138-141.

• Review of “Reporting the Effects of Changing Prices: A Review of the Experience with Section 4510,” (CICA Research Report by Hanna, Kennedy & Richardson) Contemporary Accounting Research (Fall 1992) pp. 356-363.

• “Costs of Accounting to Lenders: Canadian Evidence,” Accounting and Business Research (U.K.) (Summer 1992) pp. 261-273.

• “L'intervention de l'état dans les marchés de l'expertise comptable—réquisitoire,” Finance-Economie-Comptabilité (Spring 1992) pp. 1-12. With long English abstract.

• “Barton Limited” (case on the uses of inflation-adjusted accounting data in firm valuation and performance evaluation) Journal of Accounting Case Research (Fall 1992) pp. 1-26.

• Commentary on “Master Limited Partnerships: An Examination of Changes in Dividend Distribution Policy,” Contemporary Accounting Research (Spring 1991) pp. 424-430.

• “Theory and Metaphor in Accounting,” Accounting Horizons (Dec 1988) pp. 1-9.

• “Values in Use vs. Capital Replacement Costs: Theory and Canadian Evidence,” Contemporary Accounting Research (Fall 1988) pp. 212-247.

• Commentary on “On Interim Information and the Information Content in Earnings: A State Variable Approach,” Contemporary Accounting Research (Spring 1988) pp. 470-484.

• Krinsky, I., Rotenberg, W., & Thornton “Takeovers: A Synthesis,” Journal of Accounting Literature (Fall 1988) 243-279.

• “Inflation, Accounting and the Canadian Corporate Tax Base,” Canadian Journal of Administrative Sciences (Mar 1987) pp. 66-96.

• “Current Cost Disclosers and Non-disclosers: Theory and Canadian Evidence,” Contemporary Accounting Research (Fall 1986) pp. 1-34. Discussion by G. Benston pp. 35-44.

  • Reprinted 1991 (1 of 6 articles) in Mattessich, ed., Accounting Research in the 1980s and its Future Relevance CGA Research Foundation Monograph #17, pp. 187-218.

• “Accounting Principles in Bond Covenants: Policy Perspectives and Canadian Evidence,” Canadian Journal of Administrative Sciences (June 1985) pp. 139-160.

• Review article: “R. Mattessich ‘Modern Accounting Research: History, Survey and Guide,’” Contemporary Accounting Research (Fall 1985) pp. 124-142.

• Review of “Finance A Conceptual Approach,” by N. Biger Journal of Finance (Sept 1982) pp. 1111-1113.

• “Information and Institutions in the Capital Market,” Accounting, Organizations and Society (September 1979) pp. 211-233.

• “The Rule of 69 in Perspective: A Note on the Force of Interest,” Journal of Business (University of Chicago) (October 1976) pp. 515-17.

Reverse chronological listing of expert witness and other professional engagements

• Department of Justice, Canada 2020- in process – Fisher Canada Holding ULC 1 v HMQ, Court File No. 2017-2984(IT)G. Expert accounting report re: accounting for payments of dividends vs. distributions of paid up capital to foreign affiliates.

• Department of Justice, Canada 2019- in process – Robert Chad v HMQ. Expert accounting report and scheduled testimony for the Crown re: accounting for derivative securities (foreign currency forward and futures contracts) under Accounting Standards for Private Enterprises.

• Blake, Cassels & Graydon LLP 2015- in process - Husky Oil Operations Limited v. HMQ (T.C.C.). Expert report for Husky on accounting for partnership capital and contributions receivable, substance vs. form in accounting.

• Lenczner Slaght Royce Smith Griffin LLP 2020 – MacDonald et al. v BMO Trust Company et al. Expert accounting report re: application of the matching principle in accounting for profits from foreign currency conversions.

• Davies Ward Phillips & Vineberg LLP 2017-19 – The Trustees of the Drywall Acoustic Lathing and Insulation Local 675 Pension Fund and Royce Lee v. Barrick Gold Corporation. Expert accounting report and deposition April 2019 re: asset impairment and contingent liabilities under US GAAP and International Financial Reporting Standards (IFRS).

• McCarthy Tetrault LLP 2016-19 - BCE Inc. et al. ats BNP Paribas (Canada). Expert report on accounting for goodwill impairment and pushdown accounting under US GAAP. Case settled prior to trial.

• Hogan Lovells LLP (Miami, USA); Jensen Shawa Solomon Duguid Hawkes LLP (Calgary) 2018 – Arbitration Proceeding. Expert report and testimony for MasTec Inc., a US company regarding the use of Canadian Accounting Standards for Private Enterprises in the construction industry.

• Department of Justice, Canada 2017 - Plains Midstream Canada ULC v Her HMQ (T.C.C.). Expert advice on accounting for a loan with contingent payments.

• Department of Justice, Canada 2016 – Intact Insurance Company v. HMQ Court Number: 2014-2138(IT); The Nordic Insurance Company of Canada v. HMQ Court Number: 2014-2139(IT)G – Expert accounting report for the Crown re: application of the matching principle in accounting for deferred policy acquisition expenses. Case settled prior to hearing.

• Department of Justice, Canada Oct.-Dec. 2015 – Chevron Canada Limited v. HMQ. Retained to provide expert accounting opinion regarding the recording of intra-company transactions. The assignment ended after preliminary work because my tentative opinion was not compatible with the Department’s needs.

• Blake, Cassels & Graydon LLP March-June 2015 - Jim Whiteside, Jason Wright, Steve Wilson and 3077187 Canada Ltd. v. Celestica International Inc. Expert accounting report for the defendant on the use of estimates, subsequent events, and prior period errors. Settled just prior to scheduled trial.

• Sutts, Strosberg LLP and Koskie Minsky LLP July 2014 - Bardwell v. Martinrea et al. Court File No. CV-13-20310 CP. Class action. Expert accounting report for the plaintiff on the correction of immaterial prior period errors.

• Borden Ladner Gervais LLP May 2014 - George Weston Limited v. HMQ. Expert accounting report and testimony for the Appellant regarding consolidations, foreign currency translation and hedge accounting for cross-currency basis swaps. Judgment in favor of the Appellant.

• McInnes Cooper, 2013/14 - Hibernia Offshore Development Project Royalty Dispute Arbitration. Expert accounting report for Hibernia regarding the retrospective application of a voluntary change in accounting policies and the correction of prior period errors.

• Affleck Greene McMurtry, 2012-13 – Xplore Technologies Corp. v. Deloitte & Touche LLP. 06-CV-311056PD2. Expert accounting report for the Plaintiff re: premature revenue recognition. Settled in favor of Plaintiff, April 2013; hence not called to testify.

• Department of Justice, Canada, 2013 – The Standard Life Assurance Company 2006 v. Her Majesty The Queen. Court Number: 2010-2576UT)G – Justice File: 3-707990. Expert report for the Crown re: accounting for joint ventures in the context of capital tax computations. Case settled in favor of the Crown with respect to joint venture accounting, April 2013; hence not called to testify.

• Department of Justice, Canada, 2008-2013 – OCGC Limited Partnerships: Garber, Belchetz and Leckie Morel v. HMQ – Expert accounting report for the Crown re: Characterization of assets, liabilities and expenses under Generally Accepted Accounting Principles; accountants’ responsibilities in preparing financial statements subject to review engagements. Settled in favor of the Crown May 2013; hence not called to testify.

• Lenczner Slaght Royce Smith Griffin LLP, 2012 – Trustees of the Labourers’ Pension Fund of Central and Eastern Canada et al. v. Sino-Forest Corporation et al. – Expert accounting report for the Defendants re: Cash Flow Statement format and non-GAAP financial measures (EBITDA). Outcome unknown. Not called to testify.

• Department of Justice, Canada, 2012 – Allan McLarty (Appellant) v. HMQ: TCC No. 98-1659(IT)G. Expert accounting report and testimony for the Crown re: accounting for an oil and gas venture in Alberta. Judgment in favor of McClarty.

• Harrison Pensa LLP and Sutts Strosberg LLP, 2011/12 – Mandeville et al. v. Manulife: Expert report and testimony for the Plaintiff in a class action involving a Canadian insurance company: opined that participating policy holders were characterized as owners of the company for accounting purposes prior to a demutualization transaction. Judgment in favor of Manulife.

• Torys LLP, New York, NY, 2011/12 Hudson’s Bay Company Luxembourg v. JZ LLC and AGZ LLC – Expert accounting report and testimony for the Defendant re: characterization of inventories and accounting policy disclosures relating to a corporate acquisition dispute. Judgment in favor of the Defendant.

• Torys LLP, Toronto 2010/11 – Howard Green and Anne Bell v. Canadian Imperial Bank of Commerce. With F T I Consulting, New York NY – Expert report and testimony re: accounting for and disclosure of financial instruments and derivatives relating to US residential mortgage exposures. Class action.

• Department of Justice, Canada, 2011 – McKesson Canada Corporation v. HMQ: TCC No. 2008-2949(IT)G; 2008-347(IT)G. Expert report for the Crown re: Accounting for transfers of accounts receivable and securitization. Written report was accepted by McKesson counsel (Blakes Law Firm); did not need to testify. Judgment in favor of the Crown December 13, 2013.

• Department of Justice, Canada, 2010 – Characterization of advances on long-term construction contracts for purposes of capital tax. Bombardier Inc. v. Her Majesty The Queen Tax Court of Canada File No. 2008-1624(IT)G. See previous section re: testimony. Judgment in favor of Bombardier.

• Camp Fiorante Matthews, 2010 – Class action relating to calculation of revenues and profits on children’s cough medicine. Expert report on costing under generally accepted accounting principles.

• Fraser Milner Casgrain LLP, 2010 – Expert report on the characterization of financial service revenues for value-added tax purposes. Costco Wholesale Canada Ltd. v. Her Majesty the Queen Tax Court of Canada. Not called to testify.

• Department of Justice, Canada, Prairies Region 2009 – Expert accounting report on the accounting issues relating to capital tax for unincorporated subsidiaries. Report accepted.

• Tax Law Services, Department of Justice (Canada) 2009 – Expert accounting report on the accounting for transactions in special classes of shares with contributed surplus and reinvested dividends. The Toronto-Dominion Bank v. Her Majesty The Queen. See previous section re: testimony.

• Alberta Securities Commission 2009 – CV Technologies Ltd. (ColdFx): Expert accounting report on revenue recognition when the right of return exists. Tendered expert report. Case settled in favor of the Commission prior to hearing; hence not called to testify.

• Osler Hoskin & Harcourt (Montreal, Quebec) 2008-09 – Income recognition relating to hedged foreign currency transactions in a subsidiary. Outcome unknown.

• Ontario Securities Commission 2009 re: Melnyk – Revenue recognition for shipments in transit (truck wreck). Tendered expert report. Result in favor of the Commission; hence not called to testify.

• Ontario Securities Commission 2008-09 – re: Biovail Corporation – Revenue recognition for bill-and-hold transactions. Tendered expert report. Case settled in favor of the Commission prior to hearing; hence not called to testify.

• Ontario Securities Commission 2008-09 – re: Biovail Corporation – Consolidation of special purpose entities. Tendered expert report. Case settled in favor of the Commission prior to hearing; hence not called to testify.

• Department of Justice (Canada) 2008 – Expert report on the financial reporting of liabilities and contingencies relating to excise tax penalties in the Canadian tobacco industry under Canadian and International Accounting Standards. Tendered expert report. Issue settled in favor of the Crown.

• Department of Justice, Canada 2007-2008 Luscar Ltd. v. Her Majesty The Queen Tax Court of Canada 2005-897(IT)G – Defeasance of Long term Debt with Sinking Funds for Tax Purposes. Settled in favor of the Crown; hence not called to testify.

• Morrison & Foerster LLP (New York, NY) 2007-2008 – Expert accounting witness re: revenue recognition and the provision for losses in extended warranty/maintenance contracts. Tendered expert report. Case settled in favor of the client prior to deposition.

• Stikeman Elliott (Toronto, Canada) 2007 – Expert accounting report re: future-oriented financial information, financial forecasts, and the use of hindsight in making accounting estimates. Tendered expert report. Outcome unknown.

• Bates Barristers (Toronto, Canada) and Harrison Pensa (London, Canada) 2006-09 – Expert accounting witness regarding the application of accounting definitions of assets and liabilities, with respect to transfers between participating policy holders’ accounts and shareholders’ accounts. See previous section on testimony.

• Mayer, Brown, Rowe & Maw, LLP (New York, NY) 2006 – Expert accounting witness, defending Canadian public accountants v. liability in US bankruptcy proceedings (Semi-tech Litigation, LLC v. James H. Ting et al.). Tendered expert report. Case settled in favor of the client; hence not called to testify.

• Department of Justice (Canada) 2006 – Inco Limited v. Her Majesty The Queen 2006. Tax Court of Canada No. 2005-4283(IT) G, 2006-177 (IT) G. Expert testimony for the Crown re: inclusion of executive stock options in taxable capital. October 2006. Judgment in favor of the Crown 2010.

• Department of Justice (Canada) 2006 Citibank: CCLI (1994) Inc. v. The Queen Tax Court of Canada 2002-2006(IT)G – Lessor Accounting for Leases and Foreign Currency Gains/Losses. Tendered expert report; report accepted; not called to testify.

• Golden Star Resources Limited (Colorado, USA) 2006 – Consultant re: hedge accounting for commodity derivatives.

• EquiGenesis Inc. (Toronto, Canada) 2006 – Expert report re: hedge fund valuation for tax purposes.

• Institute of Chartered Accountants of Ontario 2005 – Accounting consultant/expert witness re: accounting for “real” (as opposed to financial) options by Live Entertainment Corporation of Canada, Inc. (Livent). Tendered expert report. Not called to testify because case settled.

• Kinross Gold Corporation (Toronto) 2005 – Accounting consultant/mediator re valuation of a business unit, goodwill impairment, implementation of FASB Concepts Statement No. 7 on valuation methodology, and assistance with US SEC filings. SEC accepted client’s re-filed documents.

• Bennett Law Firm (Portland, Maine) 2005 – Expert accounting report re: international accounting standards. Tendered expert report. Case settled in favor of the client.

• Department of Justice (Canada) 2004 – Trom Electric Co. Ltd. v. Her Majesty The Queen Tax Court of Canada No. 2000-2619 (IT) G, 2004. Expert testimony for the Crown re: Revenue recognition in construction contracts; retroactive restatement of income. Judgment in favor of Trom.

• Department of Justice (Canada) 2003 – Henry Bernick v. Her Majesty The Queen Tax Court of Canada No. 97-3429 (IT)G, 2003. Expert testimony for the Crown re: Use of international accounting principles in determining Canadian taxable income; representational faithfulness of accounting income. Judgment in favor of the Crown.

• Department of Justice (Canada) 2000 Westside Cemeteries v. Her Majesty The Queen Federal Court of Canada T-2205/7-87, 2000. Expert testimony for the Crown re: Measurement of reserves. Judgment in favor of Westside.

• Department of Justice (Canada) 1999 – Minto Developments v. Her Majesty The Queen Tax Court of Canada No. 97-3429 (IT)G, 1999. Expert testimony for the Crown re: Measurement of reserves. Judgment in favor of Minto.

• Department of Justice (Canada) 1998 – Canadian Pacific Limited v. Her Majesty The Queen 98 DTC 2021, 1998. Expert testimony for the Crown re: Use of financial derivatives to alter the timing and character of taxable income. Judgment in favor of the Crown.

• Barclays Global Investors 2003-2004 (Toronto, San Francisco) – Accounting consultant re: residual income valuation models.

• Davis & Company/Syncrude Canada Ltd. (Edmonton, Canada) 2004 – Expert accounting witness in an arbitration re: Application of GAAP in determining Crown royalties in the Alberta Oil Sands. See previous section on testimony.

• Office des Professions du Québec, 1991 - Consultant, regulatory framework for professional accountants.

• Alberta Wheat Pool 1991 – Accounting arbitrator re: pension accounting issues.

• Department of Justice (Canada) 1986 – Friedberg v. Her Majesty The Queen 92 DTC 6031, 1986. Expert testimony for the Crown re: Use of commodity derivatives (gold straddles, i.e., futures contracts) to alter the timing and character of income. Judgment in favor of Friedberg.

Applied Research—publications in newspapers and professional magazines; interviews in the financial press

• Numerous citations in financial press: Washington Post, Globe and Mail, National Post, The Bottom Line, Check Mark, Reuters.

• “Tax-Raiding the Caymans Won’t Solve the Incentive.” Globe & Mail Report on Business March 14, 2015, p. B2.

• “Mark-to-Audit Values” (The solution to the mark-to-market dilemma is to have auditors drill down into bank assets and assess value.) National Post March 27, 2009, p. FP11 (1,750 words).

• Long interview on the implications of Queen’s “Conservatism” research for professional liability in the financial services sector. Globe & Mail, p. CA5, March 25, 2008

• Coverage of Residual Income Model

  • “Accounting for Value.” Advisors’ Edge June 2005.
    
  • “RIM’s Shot.” Canadian Business June 6-10, 2005, pp. 63-64.
    
  • 8-minute interview, The Business News, Report on Business Television, Toronto, May 20 2005
    
  • “A Company’s Value is Found in its Books.” National Post May 14, 2005 p. FW 8.
    
    • “True Value.” Money Sense Feb/Mar 2005, p. 10
      

• “The GAAPs in Their Logic,” National Post September 25, 2003, p. FP 15 (1300 words).

• “Accounting Issues Post-Enron.” 15-minute interview, The Business News, Report on Business Television, Toronto, April 2002.

• “Jo the CEO’s Stock Options,” National Post July 17, 2002, p. FP15 (900 words).

• “The Value of a Good Audit,” National Post April 23, 2002, p. A15 (1600 words).

• “Canadian Financial Reporting—A View from the Outside,” CA Magazine, January 2002 web version.

• “Productive Partnerships,” (article on the multi-period taxation of investment income). «Pour une association rentable» CGA Magazine July 1992 pp. 35-41.

Research — peer reviewed monographs

• Thornton and Bryant, GAAP vs. TAP (Generally Accepted Accounting Principles vs. Tailored Accounting Principles) in Lending Agreements: Canadian Evidence, Canadian Academic Accounting Association 1986 (reprinted 1991) 75 pp. [Les PCGR contre les PCP (principes comptables généralement reconnus contre les principes comptables personnalisés) dans les contrats de prêt au Canada.]

  • Book reviews of this volume: Accounting Review October 1987; Contemporary Accounting Research Spring 1988.
    

• The Financial Reporting of Contingencies and Uncertainties: Theory and Practice, CGA Research Foundation 1983 170 pp.

  • Book review of this volume: Accounting Review Oct 1984.

• “Economic Consequences of Lease Capitalization in Canada: Implications for Standard Setting,” in Basu and Milburn, eds., Research to Support Standard Setting in Financial Accounting: A Canadian Perspective Toronto: Clarkson Gordon Foundation 1982 pp. 307-352. Commentaries by J.-M. Gagnon and J. Boersema pp. 353-369.

Applied Research Publications

• Magnan, M. and Thornton, Fair Value Accounting (FVA) article: “FVA: Smoke and Mirrors.” CA Magazine March 2010 pp. 19-25.

  • Comptabilité à la Juste Valeur (CJV): «CJV: Écran ou miroir? » CA Magazine mars 2010, pp. 18-25.

• “On the Care and Nurture of Loan Guarantee Programs,” in Financing Growth in Canada, Industry Canada Research Series 1997, pp. 683-88.

• “Serving Up Derivatives,” Canadian Investment Review (Fall 1996) pp. 35-38.

• “Green Accounting and Green Eyeshades,” CA Magazine feature article October 1993, pp. 34-40; «Eco-comptabilité et visières vertes» pp. 34-41.

  • Runner-up for Walter J. Macdonald Award (best English-language feature article) in 1993.
    
  • Reprinted in Zeff and Dharan 1997 (See Research: Book Chapters and Reprints, page 14 below.)
    

• “Respectfully Yours,” CA Magazine education department November 1993, pp. 34-38. «Lettres de créance universitaire» pp. 37-42.

• “Tax Planning Taxonomy,” CA Magazine July 1991 pp. 73-78. «La planification fiscale fait sa place au soleil» pp. 38-46.

• “Agency Theory for the Novice—Part 2,” CA Magazine Jan 1985, pp. 93-106 (‹‹Perspectives sur la théorie de la relation mandant-mandataire››)

  • Reprinted in M. Anderson ed. Readings in Financial Reporting 1988, pp. 220-230.
    

• “Agency Theory for the Novice—Part 1,” CA Magazine Nov 1984 pp. 90-103 (‹‹Perspectives sur la théorie de la relation mandant-mandataire››).

  • Reprinted in M. Anderson ed., Readings in Financial Reporting 1988, pp. 210-22

• “Application of Current Value Accounting to Lease Assets,” CA Magazine (June 1976) pp. 32-42. English version reprinted in Readings in Financial Analysis Institute of Chartered Financial Analysts, University of Virginia, 1978.

• “The Effect of Income Taxes on Capital Investment Analysis,” CA Magazine (Jan 1975) pp. 60-63.

Research — book chapters and reprints

• Abridged reprint of Macintosh, Shearer, Thornton & Welker “Financial Accounting as Simulacrum and Hyperreality: Perspectives on Income and Capital,” Accounting, Organizations and Society (January 2000. In N. Macintosh and T. Hopper, Accounting, the Social and the Political, Amsterdam: Elsevier 2005.

• “Managerial Tax Planning: Principles and Applications – in S.R. James, ed., Taxation: Critical Perspectives on the World Economy. London and New York: Routledge 2002, Volume IV, pp. 119-155.

• “Green Accounting and Green Eyeshades,” in S. Zeff and B. Dharan ed.: Readings and Notes on Financial Accounting: Issues and Controversies 5th ed., New York: McGraw-Hill Inc. 1997, pp. 262-270.

• “Research Method(ologie)s in Positive Accounting,” in A.J. Richardson, ed., Research Methods in Accounting: Issues and Debates CGA Research Monograph No. 25, 1996, pp. 105-117.

• “The Evolution of Canadian Tax Policy for Preferred Dividends, 1975-89: An Application of the Coase Theorem,” 7th World Congress of Accounting Historians Aug 1996. Abstract only, p. 349.

• “Accounting Measurement,” in Measurement Research in Financial Accounting. Ernst & Young Foundation: Toronto 1994, pp. 73-79.

• “Current Cost Disclosers and Non-disclosers: Theory and Canadian Evidence,” Reprinted (1 of 6 articles) in Mattessich, ed: Accounting Research in the 1980s and its Future Relevance CGA Research Foundation Monograph #17, 1991, pp. 187-218.

• Bryant, M. & Thornton “Public Choice of Corporate Accounting Standards,” in Mattessich ed. Modern Accounting Research: History, Survey and Guide CGA Research Foundation 1984 (reprinted 1991) pp. 151-163.

• “Free Trade and Accounting,” in Dauderis Financial Accounting Holt Rinehart 1990. Reprinted in Dauderis and Annand, Financial Accounting: An Introduction to Decision-Making Harcourt Brace Jovanovich 2000, 1997 and 1991.

• “Prehistoric Foundations of Historical Cost Accounting,” in Dauderis Financial Accounting Holt Rinehart 1990. Reprinted in Dauderis and Annand, Financial Accounting: An Introduction to Decision-Making Harcourt Brace Jovanovich 2000, 1997 and 1991.

Research — Monographs – Other

• Losell, D. and Thornton. Role of the Auditor. CGA Canada 1986 pp. 200.

• Lazar, F., Sievers, M. and Thornton. An Analysis of the Practice of Public Accounting in Ontario. Ministry of Attorney General of Ontario, 1978, pp. 377. Continually cited during the 1980s in peer-reviewed papers on regulation of public accounting in Canada.

Textbooks and Monographs

• RIM Fundamentals – An Introduction to the Residual Income Model – Mimeo 2005, 2006, 2007, 2008, 2009.

• Managerial Tax Planning: A Canadian Perspective First ed. John Wiley & Sons 1993, pp. 636. Mimeo Second ed. 1999. Mimeo Third ed. 2005, 2006. Book reviews of first edition:

• Contemporary Accounting Research Spring 1997, pp. 165-170.

• Canadian Journal of Administrative Sciences March 1997, pp. 103-4.

• CA Magazine 1994, Globe & Mail January 1994.

• Macnaughton, A., and Thornton, “Microeconomic and Decision-Based Tax Pedagogy: Canadian Applications,” in J.A. Meade, ed., Methods, Topics and Issues in Tax Education: A Year 2001 Perspective. American Accounting Association 2001 (American Taxation Association Section) pp. 168-180.

• Accounting Literature: Research for Users Prentice-Hall 1995.

• Contains articles reprinted from CA Magazine education department during my editorship 1991-95. Royalties donated to Canadian Academic Accounting Association and the Canadian Institute of Chartered Accountants.

• Introduction to Financial Accounting (with Horngren, Sundem and Elliott) first Canadian ed. Prentice-Hall 1995, pp. 862.