Practical analysis for investment professionals

GAAP


Don’t Overlook Accounting Comparability

Low accounting comparability can be costly for both firms and managers.

Revenue Recognition: The Bottom Line on the New Top Line

Revenue — perhaps the most important number in financial statements — and how it is calculated by nearly every public company across the globe is set to change. Sandra Peters, CFA, considers the impacts.

Book Review: The End of Accounting and the Path Forward for Investors and Managers

Drawing from a comprehensive empirical analysis, the authors demonstrate how financial reports have largely lost their relevance and present an actionable alternative for finance professionals.

Non-GAAP Business Performance Measures: An Investor Perspective

Non-GAAP company performance measures are growing in prominence. Is this a good thing for investors who rely so strongly on accounting numbers for evaluating performance and valuing businesses? A recent CFA Institute webinar explored the issue.

Exploring Cross-Sectional Effects of Inflation

The US generally accepted accounting principles (GAAP) do not require adjustments for inflation, so financial statements are reported in nominal terms. This struck Yaniv Konchitchki as problematic. In his recently published article “Accounting and the Macroeconomy: The Case of Aggregate Price-Level Effects on Individual Stocks,” Konchitchki examines stock-valuation effects of aggregate price-level changes on individual companies.

Is It Déjà Vu All Over Again?

The Wall Street Journal has published a number of articles about Groupon, the ecommerce internet company that is planning to go public. A July 28th article focused on Groupon’s use of a… READ MORE ›



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