In July of 1992, the Financial Accounting Policy Committee (FAPC) of the Association for Investment Management and Research (AIMR) submitted to the board of governors of AIMR its exposure draft on financial accounting policy for the 1990s. The full report, authored by Peter Knutson of the Wharton School, represents the collective views of AIMR's investment professional members, as filtered through the FAPC. It addresses issues such as the use of financial reports in the analytic process, the form, content and frequency of financial disclosures, the separate but complementary roles of financial analysis and financial reporting, the globalization of financial markets, the increasing use of electronic media, and the appropriateness of cost based financial reports for financial and other service organizations. The full report runs to over 70 pages. We present below excerpts from the "Executive Summary".