A few weeks ago, the CFA Institute put out this report on financial reporting, outlining 12 basic principles. I'll post them above in a separate post, but they include the assertion that fiar value is the only relevant information, that all economic transactions and events must be recognized, and that the direct method of cash flow is the only useful method.
Why should you care? Because FASB and the IASB do.
At their bi-annual meeting--when time is precious and typically devoted to hammering out differences between US GAAP and IFRS--they devoted more than an hour listening to Rebecca McEnally and Pat McConnell present this paper. To be sure, McEnally and McConnell came in for some tough questioning (addressing a FASB/IASB meeting is like defending your thesis before a post-graduate accounting debate club), but the unity of purpose among presenters and audience were clear.
Indeed, one board member urged McEnally to encourage more analyst participation in, and support for, standard setting. "To a large extent around world, perhaps excluding UK, we are in a battle where preparers are very vocal and investors and analysts are absent," he noted. Echoed FASB Chairman Bob Herz, to nods from the other board members: "And in the UK and US, too."