Another View


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


6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.


How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.