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.
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 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.
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.
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