Back to basics.

AuthorCassell, Merrill
PositionLetters - Letter to the editor

Given our current economic problems, I think we should be asking what accountants can do to help ease the global financial crisis. Can we help to prevent a future crisis of a similar nature?

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First, we have to go back to the basics of accounting--ie, all assets and liabilities must be priced into the accounting system. "Footnote" accounting should cease to exist. If all assets and liabilities had been priced into the system, then illiquidity should have shown up in the accounts and served as an early-warning signal that businesses were in trouble.

Second, accountants should focus on evaluating economic and...

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