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Frederick E. Schea: Making a Difference
The new IMA Chair cites the skills and knowledge he gained while earning the Certified Management Accountant designation for helping him have confidence in his abilities to succeed in his professional life. As someone who strives to make a difference in everything he does, he aims “to make IMA the leading association representing finance and accounting professionals inside organizations”—one that advocates for the profession, upholds the highest ethical standards, and helps members achieve their career goals.
Fair Value Accounting: Are You Ready?
Are companies truly prepared for the implementation of fair value accounting? As the FASB increases the pace of application, companies need to transition from resisting its use to focusing on addressing the processes and resources that it will require. This includes the need to be aware of critical issues regarding fair value governance policies, financial reporting of fair value information, and investor relations and education.
Why Historical Cost Accounting Makes Sense
Tim Krumwiede, CPA
ATo be useful, financial information must be relevant and reliable. The traditional approach of historical cost accounting for financial reporting focuses on the income statement and provides information that is reliable and verifiable. Fair value accounting, however, employs a balance-sheet approach that involves estimates and can result in information that is potentially unreliable, not easily verified, and not based on market observations.
The Fatal Flaw in SFAS No. 157
Warren D. Miller, CFA, ASA, CMA, CPA
One vital assumption in Statement of Financial Accounting Standards No. 157 is that market participants reach consensus on the value of an asset, including long-lived nonfinancial assets and intangibles. Yet research shows that companies within an industry can be very dissimilar and often see the world in different ways. This not only leads to speculation and volatility in valuation, among other problems, but it also doesn’t diminish the possibility of malfeasance. Returning to a focus on fair market value would result in more accurate, valuable, and transparent valuation.
Draft Statement on Management Accounting: Definition of Management Accounting and Management Accountants
The Institute of Management Accountants (IMA®) issued the first definition of management accounting in 1981 to help solidify the identity of the profession and outline its place in society. This Statement on Management Accounting exposure draft updates that definition to incorporate the changes that have occurred within the profession since then and to provide a more accurate representation of the current state of management accounting.
A salute to Capt. Larry White.
What do MBA students think about business and society?
FRC and SBC are working hard.
Preparing journal entries with pivot tables.
Turning obligation into opportunity.
The future of private-company financial reporting.
Strategic plan update.
Cox disclosure initiative: Window dressing?
Letters: Great article.
Books: Shedding light on fraud.
TOOLS OF THE TRADE
Clippers and other flightless birds.
August bank holiday.