Another View

BY OSCAR S. GELLEIN

The letter, “A Historical Look at Standards” ( JofA, Oct.00, page 16) , supports retention of the “traditional theory of matching costs with related revenues, using an historic cost basis” and rejection of a “fair-value-based, balance-sheet-oriented system.” It implies that a continuing focus on matching costs might have prevented some cases of “managed earnings.”

That implication is not supported by analysis of instances of managed earnings. The common characteristic of such cases is that the matching controls have been violated. Those controls derive from the balance sheet, quite apart from whether measurement should be based on historic cost or fair value.

Oscar S. Gellein
Golden, Colorado

PODCAST

What’s next for potential CPA licensure changes

A new model proposed by NASBA and the AICPA is designed with an eye on the future for newly licensed CPAs. The AICPA's Carl Mayes, CPA, provides background on the project and a look ahead to 2020.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.