Financial reporting has long been viewed as the main form of communication with investors. Emerging new technologies, new business models, and new industries have brought into question the relevance of accounting and financial reporting in their current form.
In this podcast episode, Professor Feng Gu, Chair and Associate Professor, Accounting and Law, School of Management at the University of Buffalo, will provide an overview on why financial statements have lost their relevance and what must be done to restore the relevance and viability of accounting and financial reporting in a modern economy. He will share insights, gained from writing his recent book The End of Accounting and the Path Forward for Investors and Managers and his thoughts on the reaction to the book. Professor Gu is in conversation with Ram Subramanian, Policy Advisor in Reporting at CPA Australia.
01.49 – The motivation behind the research that lead to the book
04.48 – Key findings from the book
11.02 – Is there a mismatch between what is an economic asset and what is an accounting asset?
12.50 - Is there tension between the prevalence of accounting estimates and the conservatism of managers in preparing financials?
15.03 - Differences in the US and Australian settings
23.07 - How integrated reporting fits in
26.45 – The matching principal
32.23 – How accountants should prepare themselves for the future in this new world