Daily Financial Reports

August 31st, 2011 - 41 Comments

“In an age of lightning-fast stock trades and instant communications, yearly and quarterly financial reports seem stuck on an industrial-era pace that some say was obsolete decades ago,” Reuters reports. “Accounting experts have long called for a move to real-time, online reports in lieu of quarterly earnings statements that investors now use to decide whether to buy stocks.”

Well, not all accounting experts. Smeal’s own J. Edward Ketz and his colleague Anthony Catanach of Villanova University have serious doubts that society would be better off with this constant barrage of financials. They covered the topic recently on their blog, Grumpy Old Accountants:

Even if one could produce daily financial statements, there remains the problem of comparability.  It is hard enough now to compare quarterly statements of different firms whose seasonal effects vary, but now let’s try to compare daily financial statements of CBS with Ford.  This is nonsense.  Even restricting such analysis to firms in the same industry will not guarantee comparability as there is too much daily variability.

Let’s now consider auditing this “moment-by-moment” report generating machine.  It isn’t clear to us that the reports are auditable, except for the cash flows.  Worse, how does a business concern construct viable internal controls to handle the transactions and events in such an environment?  Given the pitiful state of some firms’ internal control systems, the extra strain would make a mockery of the audit process.

Having the technical skills and the technical machinery to allow daily or hourly financial reports is not sufficient for enabling continuous financial statements.  No, either the accounting reports become dumbed-down or we toss accrual accounting out of the window.  And audit firms have too much trouble auditing corporations now—witness the scores of restatements and accounting scandals—that they would have no chance of ever doing it right in a continuous reporting environment.

We pity the SEC if this day ever comes.

There’s more on their blog.

Tags: , ,

This entry was posted on Wednesday, August 31st, 2011 at 2:41 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

41 Responses to “Daily Financial Reports”

  1. David Case says:

    FYI, Groupon is a CHICAGO company with big Chicago White House connects.Hasn’t the SEC looked the other way for the Republican connected in admins of the past involving some of the biggest failures in US History. Dem or Repub all the same. Maggie is right when she says “And wonder why more people won’t invest in the market”. Groupon is a negative business model that parasites on a negative margin.

  2. Cheap credit says:

    Very true! Makes a change to see semoone spell it out like that.

  3. Where can I find more information about this issue?

  4. Elmer Gies says:

    I’m impressed, I must say. Really rarely do I encounter a weblog that’s both educative and entertaining, and let me tell you, you could have hit the nail on the head. Your thought is outstanding; the problem is something that not enough individuals are speaking intelligently about. I am very joyful that I stumbled throughout this in my search for one thing referring to this.

  5. A great Blog indeed and a very detailed, realistic and superb analysis, of this issue, very nice write up, Thanks.

  6. pity 2011 says:

    Desired. Perhaps this is not the absolute right place, but everywhere we are searhing for opportunities to make life more bearable in the care where possible. Do not stop even for your moment. If you have the way to support our Foundation with this task, no support will definitely not remain unnoticed. Our priority is rebuilt plus running rehabilitation and integration unit, which will be worked by disabled people to get disabled people, of course, under the watchful observation of therapists. Help us build the actual Villages of Joy and smiles for the faces of children using disabilities glows over our forest glade as a rainbow. Add your brick and a rainbow will not be there forever. As our contribution Poles can download a cost-free program to the Deal PIT: The best program with the production of annual accounts in the Office of Applied FORMAT – Leader on the Polish market accounts. The program is the only person in Poland, has the recommendation in the Polish Economic Society. His Forward 1 percent tax and also the Foundation will contribute to creating a center for disabled small children.

  7. The article which you have posted is very informative.

  8. You have great point there! As for me. I think I will just hire an accountant..

  9. osteoporoza says:

    It has long been looking for an article on Daily Financial Reports Business Casual Blog .

  10. I guess that is a simply but short analysis that I missed while evaluating his debates.  The guy is the member of a wealthy family that uses our political system as a sport to further their own acquisition of wealth through government policy.  Has anyone thought this guy can will advance a policy while using a cover story but leak details so his investment buddies can hedge their investments in advance!!!!!!  THEY WILL MAKE  BILLIONS!!!!!!!!  Of course he’ll swear to secrecy, my foot!! .It’s so obvious Romney’s sole mission is to get elected by playing the middle ground.  He cant even illustrate a consistent pattern of  leadership, the guy’s history is flip-flop flip-flop, flop-flip

  11. great post! very informative article

  12. I’m getting to that point where I may need to hiring an accountant soon

  13. gute spiele says:

    Wow, I am convinced of your writing style. It’s awesome!

  14. That is very attention-grabbing, You’re an excessively skilled blogger. I’ve joined your rss feed and look ahead to seeking more of your wonderful post. Also, I have shared your site in my social networks!

  15. I think most small businesses should hire an accountant that visits their offices once a week to review the accounting procedure and review all financial statements. We definitely have our own accounting time, but my company has found it extremely helpful to pay the extra to have our financial paperwork kept in order at all times.

  16. Exploring info which is correlated to credit card debt issues is the most effective location for a human being starting when they deal with with a predicament of this variety. There are a lot of methods for resolving your issues and discovering about the finest which is suited to you for receiving that clean start off you are looking for. Just take time to appear close to the world-wide-web or contact a credit score counselor in purchase to see which way you must go.

  17. smugglers cove st lucia says:

    In Focus: Conference on Mexican-American Families…

    Women in Science Honors Texas Tech Leaders…

  18. Apples to oranges. It is amazing how stuck in the past we remain.

  19. Architect says:

    “Cheap computing power has made real-time reports more technically feasible…” Yeah, but just because it is possible does not mean it should be done.

  20. The following time I learn a weblog, I hope that it doesnt disappoint me as much as this one. I mean, I do know it was my option to learn, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could possibly fix if you werent too busy searching for attention.

  21. Great goods from you, man. I’ve understand your stuff previous to and you’re just too wonderful. I actually like what you have acquired here, really like what you are saying and the way in which you say it. You make it enjoyable and you still take care of to keep it sensible. I can not wait to read far more from you. This is really a terrific web site.

  22. I simply wished to say thanks yet again. I’m not certain the things that I could possibly have achieved without the type of hints shown by you relating to such subject. Previously it was a real daunting concern in my view, but viewing this specialised way you dealt with the issue forced me to jump over gladness. Extremely happier for your support and expect you really know what a powerful job you’re undertaking teaching people today using your web blog. I’m certain you have never got to know all of us.

  23. greek fonts says:

    Excellent blog here! Additionally your website lots up fast! What web host are you using? Can I am getting your associate link to your host? I wish my website loaded up as quickly as yours lol

  24. I’d have to examine with you here. Which is not one thing I usually do! I get pleasure from reading a put up that will make folks think. Additionally, thanks for allowing me to remark!

  25. Financial messes are part and parcel of the current US state of affairs of course. As soon as a company goes public, alphabet agencies like the SEC should save themselves and the general public the headache by PROVIDING a means for businesses to maintain hands free continuous reporting allocated through the state in which they operate, whether in the form of standardized software or ‘fill-in-the-blank’ forms for those too unorganized to develop their own accounting systems. Wait a minute, even the states can’t get their ‘accounting’ right what am I saying:)

  26. It’s perfect time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I want to suggest you few interesting things or suggestions. Perhaps you could write next articles referring to this article. I wish to read even more things about it!

  27. Mellie Rantz says:

    “I really like your fix. Minimal code. Speedy and easy. I wish all code was like this.”

  28. Hey. Extremely nice internet site!! Man .. Outstanding .. Wonderful .. I’ll bookmark this web site and take the feeds also…I am happy to locate so a lot useful details here within the write-up. Thanks for sharing…

  29. Hi there! This is my first visit to your blog! We are a team of volunteers and starting a new initiative in a community in the same niche. Your blog provided us valuable information to work on. You have done a outstanding job!

  30. Heya i’m for the first time here. I came across this board and I to find It truly helpful & it helped me out a lot. I’m hoping to offer one thing back and help others like you helped me.

  31. Lovely blog! I am loving it!! Will be back later to read some more. I am bookmarking your feeds also.

  32. Thanks – Enjoyed this post, can I set it up so I get an alert email whenever there is a fresh article?

  33. Technogym says:

    Do you have a spam problem on this site; I also am a blogger, and I was wanting to know your situation; many of us have developed some nice methods and we are looking to swap strategies with others, why not shoot me an email if interested.

  34. Nice post. I was checking constantly this blog and I am impressed! Extremely helpful information specifically the last part :) I care for such info a lot. I was seeking this particular info for a long time. Thank you and good luck.

  35. Excellent beat ! I wish to apprentice while you amend your website, how could i subscribe for a blog website? The account helped me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear concept

  36. With havin so much content do you ever run into any problems of plagorism or copyright violation? My blog has a lot of completely unique content I’ve either created myself or outsourced but it looks like a lot of it is popping it up all over the internet without my permission. Do you know any ways to help protect against content from being ripped off? I’d really appreciate it.

  37. David Rhor says:

    Very entertaing site, no new posts?

  38. Everything published made a lot of sense. But, think about this, suppose you were to write a awesome title? I mean, I don’t wish to tell you how to run your blog, however what if you added something that grabbed a person’s attention? I mean Daily Financial Reports Business Casual Blog is a little boring. You might look at Yahoo’s home page and see how they create article headlines to grab viewers to open the links. You might add a video or a pic or two to get people excited about everything’ve written. In my opinion, it might make your posts a little livelier.

  39. Woah! I’m really loving the template/theme of this website. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between user friendliness and visual appeal. I must say you’ve done a superb job with this. In addition, the blog loads very fast for me on Internet explorer. Excellent Blog!

  40. I simply could not go away your site before suggesting that I actually enjoyed the standard info a person provide for your visitors? Is gonna be again ceaselessly to check out new posts

  41. Pretty great post. I just stumbled upon your blog and wanted to mention that I’ve truly enjoyed browsing your weblog posts. After all I will be subscribing for your rss feed and I hope you write once more very soon!