Charles W. Mulford
What amount of value creation can be assigned to the efforts of management for a particular time period? That is the essence of accounting. Otherwise, it’s simply an appraisal process.
Content: Quotation | Source: CFO Publishing | Subjects: Accounting, Finance
Continuing Dangers of Disinformation in Corporate Accounting Reports (.doc)
In a hard hitting article Kane looks at the accounting profession and does not like what he finds. After laying out “an unremitting flood of accounting scams” he “traces a major part of the problem to the flawed ethics of the accounting profession” which he claims “by designing and certifying reporting options that help troubled firms and rouge managers to conceal adverse information from … [ Read more ]
Content: Article | Author: Edward J. Kane | Source: National Bureau of Economic Research (NBER) | Subjects: Accounting, Industry Specific
Valuing Employee Stock Options: A Comparison of Alternative Models (.pdf)
John Finnerty provides a very interesting look at the various ways of pricing employee stock options. Indeed it may be required reading for any class that covers pay issues. [FinanceProfessor.com Annotation]
Content: Article | Author: John Finnerty | Source: financial executives research foundation (ferf) | Subjects: Accounting, Finance
Who Rules Accounting?
An interesting look at the dynamics involved between Financial Accounting Standards Board (FASB), Congress and the SEC, including some historical background on battles, notably the ongoing one concerning expensing stock options.
Content: Article | Author: Craig Schneider | Source: CFO Publishing | Subjects: Accounting, Finance
Goodwill to All Pieces
Are companies properly valuing and assigning acquired intangibles to business units?
Content: Article | Author: Tim Reason | Source: CFO Publishing | Subjects: Accounting, Finance
How Audits Must Change
Auditors face more pressure to find fraud.
Content: Article | Author: Kris Frieswick | Source: CFO Publishing | Subjects: Accounting, Finance
The Motivation Myth
Effective mobilizing and energizing goes well beyond “doing” programs to the “being” or culture of a team, organization, or any group including a family. That culture is a set of shared attitudes and accumulated habits around “the way we do things here.”
Content: Article | Author: Jim Clemmer | Subjects: Accounting, Organizational Behavior
Tim Reason
This is the crux of the fair-value debate: each side agrees both qualities are important, but fair-value advocates emphasize relevance, while historical-cost advocates place greater weight on reliability.
Content: Quotation | Source: CFO Publishing | Subjects: Accounting, Finance
Internal Audit in Flux
The internal audit landscape may never be the same — and the picture is looking very different from one company to the next.
Content: Article | Author: Eric Krell | Source: Business Finance Magazine | Subjects: Accounting, Finance
Robert H. Herz
Accounting has historically not defined income as change in wealth, or change in net worth or value. It has defined it by thousands and thousands of conventions that measure allocations of historical costs.
…if accounting prompts strange behavior solely because of the accounting, that’s not a good answer.
Content: Quotation | Source: CFO Publishing | Subjects: Accounting, Finance
The Holes in Black-Scholes
Valuing stock-option grants with Black-Scholes may cause some confusion on the income statement.
Content: Article | Author: Tim Reason | Source: CFO Publishing | Subjects: Accounting, Finance
Questions of Value
Is fair-value accounting the best way to measure a company? The debate heats up.
Content: Article | Author: Tim Reason | Source: CFO Publishing | Subjects: Accounting, Finance
Guess Again
Baruch Lev want companies to come clean on missed estimates.
Content: Article | Author: Kris Frieswick | Source: CFO Publishing | Subjects: Accounting, Finance
Funding Fun House
Critics say current accounting lets companies distort the picture they present of pension plan performance.
Content: Article | Author: Joseph McCafferty | Source: CFO Publishing | Subjects: Accounting, Finance
How to Collect from Anyone (Even Enron)
Thirty ways to get paid within 30 days.
Content: Article | Author: Ilan Mochari | Source: Inc. Magazine | Subjects: Accounting, Finance
Introduction to Activity Based Costing (ABC)
A simple onlide slide presentation covering the basic concepts of ABC with a simple example.
Content: Article | Author: Narcyz Roztocki | Source: University of Pittsburgh | Subject: Accounting
Backward-Looking Accounting
Corporate earnings are as much opinion as fact. Here’s a radical way to fix the problem.
Content: Article | Author: Jerry Useem | Source: FORTUNE | Subjects: Accounting, Finance
Align the Books
The gap between the numbers reported to shareholders and to the taxman is growing. Critics contend it’s time to explain why.
Content: Article | Author: Tim Reason | Source: CFO Publishing | Subjects: Accounting, Finance
Is It Time to Get Rid of EBITDA?
EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, has been used by analysts and investors to measure the fiscal health of the many high-tech, media and other asset-heavy firms that do not generate earnings, but instead incur plenty of depreciation, amortization and other charges. Recently, however, EBITDA has come under fire for contributing to accounting irregularities at such companies as WorldCom and AOL Time … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subjects: Accounting, Finance
Why Firms Restate Annual Earnings and Why Investors Should Beware
The corporate scandals of the last year have left regulators and Congress working overtime on remedies such as better accounting standards and tougher penalties for renegade executives. But stock investors could use something else: an advance warning system to identify potential threats. Is there a way to tell, ahead of time, which publicly traded companies are most likely to cook the books? There’s no perfect … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subjects: Accounting, Finance