Pro Tips for Explaining Strategy & Outcome Using Management’s Discussion & Analysis

Provide Context and Guidance to Financial Statements

Financial statements provide broad information about the financial position (balance sheet), results of operations (income statement), and cash flows (statement of cash flows) of a business.  While these basic financial reports give a snapshot of the business at a given point in time, they fail to communicate much of a message to financial statement users.  In fact, financials by themselves merely present figures, ratios, and charts […]

Financial Reporting Tip: Intangible Assets

As a sole proprietor CPA, the value of my practice is comprised of intangible ideas, relationships, and processes.  By its nature, the monetary value of this “asset class” is difficult to quantify or communicate in an objective manner.  This disconnect has never sat well with me, as I always feel shortchanged by financial statements that omit my most valuable […]

Reporting Value of Digital Assets

In Spite of Inadequate Financial Regulations

It is becoming increasingly apparent that current accounting standards and financial reporting regulations are inadequate for reflecting the value of intellectually-capitalized firms of the knowledge economy.  Critics of the current system are steadily on the rise, and their voice is constantly growing louder. These rules and regulations are based on a system that was created more than a century ago, and […]