Tim Reason, CFO.com | US
April 24, 2009

Critics Pan Wrong Cash Flow

Perhaps I was one of the lucky ones having been trained by Rex Beech (FAST) 30 years ago in the Direct Cash Flow method. When I read that companies were literally whining about the cost, I was appalled. Moody's KMV analytical product currently produces this statement for bank analysts. IBM's concerns about predictability are addressed in Moody's forecast model. Perhaps FASB/IASB should look at what users are currently employing in their analytical efforts and then proceed. I will say, though, that IFRS will require "some" retraining! and the cost to convert will be expensive.

Posted by Phillip DeCarlo | May 5, 2009 9:35 AM ET

testing needed

The FASB and IASB need to test these ideas. They can start with their own organizations' books and prepare statements in their new formats from those.

Then move on by introducing some theoretical complexities to see how they'd be overcome.

Then they can move on to doing the work from the books of a volunteer company or two who have some complex activities.

Basically, they need to do alpha testing and beta testing.

Then they can release a production product.

Posted by Roland Cycan | Apr 27, 2009 4:10 PM ET

Critics Pan New Financial Statements

The IASB should follow what the FASB and the SEC promulgate. The idea is to bring the rest of the world up to U.S. GAAP standards. Their statments (International)are misleading -- and their principles based approach provides absolutely no accountability.

Posted by randall enders | Apr 27, 2009 8:58 AM ET