The End of Accounting and the Path Forward for Investors and Managers (Wiley Finance)
| Author | : | |
| Rating | : | 4.18 (743 Votes) |
| Asin | : | 1119191092 |
| Format Type | : | paperback |
| Number of Pages | : | 288 Pages |
| Publish Date | : | 2017-08-29 |
| Language | : | English |
DESCRIPTION:
Tension is Mounting in Financial Accounting David Shulman Accounting Professors Baruch Lev and Feng Gu have written a very important book on the need to update century old accounting practices. They open their book by presenting the financial statements for U.S. Steel in 1902 and 2012. There point is that not much has changed from an accounting standpoint, but from an economic standpoint U.S. Steel’s profitability dramatically declined over the century.Lev and Gu describe in great detail the accounting and finance literature demonstrating the 50 year decline in the importance of traditional a. "The end of accounting - Lev & Gu- Review by Prof. Meir Russ" according to Prof. Meir Russ. First a disclosure, I’m a business (NOT accounting) professor and I research, study and teach strategy, knowledge management and human capital (for a few years or decades). Studying Intellectual Capital is how I became aware of prof. Lev’s studies on the subject. Also, I usually do not write reviews, but in this case, I thought I should as a service to people like me who are frustrated with the lack of understating of the knowledge-driven economy, and the lack of valid and reliable indicators of it, specifically, of human capital. Not very useful. There are some good ideas here but the book fails its main purpose of justifying their new (or added) accounting reports. The authors say the current GAAP accounting system is not useful because it doesn't provide the numbers needed to predict the future. So they advocate a new Strategic Resources and Consequences Report whose data will enable investors to predict the future. Their bias is towards growth investors (think Ron Baron).It's also not at all clear (except for empire building) why this new report should have anything to do with acc
"goes far beyond a mere provocation and could be considered one of the most effective reviews on the current status of accounting." (European Accounting Association, June 2017)
An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. These docum