Book description
An innovative new valuation framework with truly useful economic indicatorsThe End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. 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.
While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making.
- Discover a new, comprehensive system of economic indicators
- Focus on strategic, value-creating resources in company valuation
- Learn how traditional financial documents are quickly losing their utility
- Find a path forward with actionable, up-to-date information
Major corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. 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.
Table of contents
- Title Page
- Copyright
- Dedication
- Acknowledgments
- The Book in a Nutshell
- Prologue
- Part One: Matter of Fact
- Part Two: Why Is the Relevance Lost?
- Note
- Part Three: So, What's to Be Done?
-
Notes
- Chapter 11: What Really Matters to Investors (and Managers)
- Chapter 12: Strategic Resources & Consequences Report: Case No. I—Media and Entertainment
- Chapter 13: Strategic Resources & Consequences Report: Case No. 2—Property and Casualty Insurance
- Chapter 14: Strategic Resources & Consequences Report: Case No. 3—Pharmaceutics and Biotech
- Chapter 15: Strategic Resources & Consequences Report: Case No. 4—Oil and Gas Companies
-
Part Four: Practical Matters
-
Chapter 16: Implementation
- How to Elicit the Proposed Information
- Pfizer Responds to Analysts' Pipeline Questions
- Why the Pipeline Expos?
- An Important Role for the SEC
- Industry Associations Could Help, Too
- But, of Course, Managers' Cooperation Is Indispensable
- Competition and Litigation Concerns
- For Consideration: Lighten the Regulatory Burden
- Takeaway
- Notes
- Chapter 17: So, What to Do with Accounting? A Reform Agenda
- Chapter 18: Investors' Operating Instructions
-
Chapter 16: Implementation
- Epilogue: Advocacy Needed
- Author Index
- Subject Index
- End User License Agreement
Product information
- Title: The End of Accounting and the Path Forward for Investors and Managers
- Author(s):
- Release date: June 2016
- Publisher(s): Wiley
- ISBN: 9781119191094
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