A key characteristic of a thriving discipline is its willingness to put aside old tenets that no longer produce useful results. Likewise, a key characteristic of a dying discipline is its clinging to old tenets that obviously aren't working.This notion certainly applies to financial reporting as it's practiced today. In too many situations, practitioners keep applying old generally accepted accounting principles to current problems, and the result is ineffective accounting. For example, today's rules for treasury stock were published in the 1930s. Despite seven decades of ever-increasing sophistication in capital structures, accountants keep accounting for massive buy-back programs as if the company bought a few shares to hold for a while and then resell.

What nonsense!

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