Accounting Principle Changes Are Likely Honest Fixes

Mar 23, 2017, 1:43 PM

When organizations change their accounting principles voluntarily, the motivation is more likely to address shortcomings than to cook the books, a new survey says. Although the media tends to portray such changes as a way to cover up losses or less than stellar earnings, institutions are more often than not striving to improve the quality of their financial reporting. External auditors' "preferability letter" that gives the green light to accounting changes have fluctuated between a high of 108 in 2000 and a low of 57 in 2007. 

Financial Executives International (3/22/17)