Generally Accepted Accounting Principles (GAAP) fits an industrial enterprise, not an intellectual one. Financial statements seldom provide useful information to investors.
A CEO was asked what keeps him up at night, his response was, "Relevancy of our core products." In that case, The End of Accounting, by Professor Baruch Lev and Feng Gu, should contribute many sleepless nights to the entire accounting profession. The accounting model is suffering from what philosophers call a deteriorating paradigm—the theory gets increasingly complicated to account for its lack of explanatory power.
A majority of the developed world’s wealth resides in human capital; the type of capital not found in traditional GAAP financial statements. The End of Accounting finds that today’s financial reports provide a small five to six percent of the information relevant to, and used by, investors. Learn more about this topic and what can be done.
Formerly titled: Success Leaves Clues: Exploring Next Practices of Extraordinary Firms: The End of Accounting?