The End of Accounting and the Path Forward for Investors and Managers (Wiley Finance)
| Author | : | |
| Rating | : | 4.57 (727 Votes) |
| Asin | : | 1119191092 |
| Format Type | : | paperback |
| Number of Pages | : | 288 Pages |
| Publish Date | : | 2016-11-01 |
| Language | : | English |
DESCRIPTION:
Tension is Mounting in Financial Accounting 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 accounting data’s influence on stock prices. Although stock prices do move in the . Prof. Lev tells today what we will be reading in accounting textbooks in twenty years! BONACCHI MASSIMILIANO Baruch Lev has an unusual gift, he makes an accounting book an enjoyable reading. Using plain English and the right dose of humor hetranslates the theory of accounting, finance, management and economics in a "survival kit" for: CEO and CFO on how to communicate with capital markets; and investors on what are the forward looking information that drive value.He starts reminding us that good accounting should provide information on firm activities to managers (inside the company) and other stakeholders (outside the company) to aid them in making rational economic decisions. As a corollary financial reports become obsolete every t. A Deteriorating Paradigm Ron Baker The traditional accounting model is over 500 years old, and it is in bad shape. Baruch Lev and Feng Gu want to change this sorry state. Their seminal book, The End of Accounting, is divided into four parts: 1) Relevance Lost; 2) Why Is the Relevance Lost?; 3) So, What’s to Be Done?; and 4) Implementation.The authors have empirically studied accounting reports for the past 50 years, documenting a fast and continuous deterioration in the usefulness and relevance of financial information to investors decisions.One compelling statistic: “Today’s financial reports provide a trifling 5-6 percent of the information
Discover a new, comprehensive system of economic indicatorsFocus on strategic, value-creating resources in company valuationLearn how traditional financial documents are quickly losing their utilityFind a path forward with actionable, up-to-date informationMajor corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation.. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. New indi
All investors should be cognizant of the issues presented in this book."—Win Murray, Director of Research, Harris Associates L.P."This is one of those rare accounting and finance books that is both thought-provoking and visionary. It's an important book for business leaders to read." —Samuel J. The authors propose and demonstrate an exciting and highly practical new direction for corporate reporting and investment analysis, focusing on the value- creating resources of the enterprise. Palmisano, Former Chairman, CEO, and President, IBM"Reading this amazing book, I was reminded of Bill James' revolution in the analysis of baseball (Sabermetrics), celebrated in the book and movie Moneyball. An essential