The Rhode Island Society of CPAs is trying to re-imagine the traditional financial statement.

The RISPCA has unveiled the initial findings of a task force that aims to produce an innovative accounting model that re-conceptualizes traditional financial statements. The new model recognizes the value of assets and liabilities that are not fully valued under U.S. GAAP. The findings represent the first phase of the RISCPA's Intangible Asset Valuation Task Force, co-chaired by Building Bridges 2012 Joy Pettirossi-Poland and Providence College School of Business professor Michael Kraten.

“We knew we had to focus on capturing and measuring the value that is created through sustainability strategies,” Pettirossi-Poland said in a statement. “If there is one profession that relies most heavily on 'human capital' than any other, it is the CPA profession. And, because we're in a new economy, we need new metrics to quantify and assess these intangible value drivers.”

The goals of the task force this year include continuing to flesh out the financial valuation concept of intangibles as assets and liabilities ; identifying evidence that shows the link between financials and traditional entries on financial statements; creating analysis that leads to recommendations and action plans; and selecting additional members to participate on the task force.

A central goal of the task force so far has been to determine how one places a 'qualitative' asset or liability on a balance sheet, according to Kraten. “Although many organizations are developing sustainability metrics, to the best of our knowledge, no one has yet created a hybrid set of financial statements that integrate quantitative and qualitative assets and liabilities,” he said. 

The task force plans to hold a kick-off event on April 16 to discuss its recent findings. Individuals who are interested in the results of the task force's activities are encouraged to contact Robert Mancini, executive director of the RISCPA, at rmancini@riscpa.org or Joy Pettirossi-Poland at joyppoland@aol.com.