We are long-time critics of generally accepted accounting principles' historical cost tradition in financial reporting. We argue for providing market values to give users the up-to-date information they need to make rational investment and credit decisions.We have had some fun in the past describing the limitations in cost-based GAAP by offering other acronyms: PEAP (Politically Expedient Accounting Principles), WYWAP (Whatever You Want Accounting Principles) and POOP (Pitifully Old and Obsolete Principles). Despite the humorous undertone, our ultimate point is serious: The current financial reporting system needs to provide better support for the capital markets. After all, they are the foundation of our economy, and work best when market participants are quickly and fully informed.
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