Does the New Economy Need a New Accounting System?
Wall Street Journal Online (10/23/00) Vol. 104, No. 42 p.B14; Burns, Judith

Academics, corporate executives, and accountants are all in agreement: the new economy needs a new system of accounting. Barry Libert, a partner at Arthur Andersen, said the current business measurement system no longer works. Robert Herz, a partner at PricewaterhouseCoopers, said the current quarterly and annual reports "don't seem to be giving the whole picture, or even the right picture." At least three studies are set to be released Tuesday, all of which call for sweeping changes in the substance and distribution of corporate accounts. The current system is set up to value tangible goods, such as factories, inventory, and equipment, but does not account for the importance of intangible assets, which are so vital in the new economy.

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