The Folly of Incomprehensible Income

Critical Perspectives on Accounting (1998) 9, 508 Article ID: pa960290

The Folly of Incomprehensible Income When one in a profession sees an ultimate folly; One has a duty to all publicly to proclaim; That Accounting and Comprehensive Income are not like Christmas and Mistletoe and Holly; But Incomprehensible Income should surely be its name. FASB should have realized there would be quite a clash; After all, SFAs No. 95 on the Cash Flow Statement did make with past accounting a break; that Incomprehensible Income is way removed from cash as the Atlantic Ocean is from a Wisconsin lake. When FASB encourages earnings that take a wild and artificial (non-cash) swing; FASB is not behaving in a sound way But is going to encourage the horrors of the business cycle thing; One wonders if FASB is okay. Accounting ultimately must be understood in society by most; If not, we accountants are going to be in sand that is quick; Just imagine Incomprehensible Income and headlines of business results in the Washington Post; Let’s face it, Incomprehensible Accounting is not worth a lick. Now I know that FASB is caught in a logical bind; that cause Incomprehensible Income to come out from the past; However, it is time to society to be kind; and admit that Incomprehensible Income is an error vast

Richard Vangermeersch

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