Hi Jake,

Thank you for your comment. I think that you may have backed yourself into a corner here. If we take your premise as true, then those that make use of financial statements can only do so if their use is in accord with the intentions of those creating them. I gotta reject that notion. Just as it is legitimate for a lover of opera to reject Rihanna as being of a different substance than Maria Callas, it is also okay for research analysts (i.e. "Rihanna fans, in keeping with the analogy) to still use (listen to) financial statements (opera), even if the audience of the creators (i.e. "opera fans") ends up being different, and having a different opinion. In other words, it is okay for research analysts to complain about accrual accounting as being slightly less than what they would want it to be. Just as it is fine for a CPA true believer to argue that accrual accounting is the only substantive form of financial reporting. Same material, different goals and contexts = now we know why setting accounting standards is difficult.

I wonder if the CPAs commenting on this post have an explanation for the poll results, other than that investment professionals "just don't understand?"

Yours, in service,

Jason