nothing direct about direct CF_CFO_nov2009

nothing direct about direct CF_CFO_nov2009 - ACCOUNTING...

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ACCOUNTING Nothing Direct about the Direct Cash-flow Method "My first reaction to the direct cash-flow method was that my forehead bounced off my desk," quipped David Bond, senior vice president of finance and control for Safeway Inc., at the Financial Executives Internal financial reporting conference in New York on Tuesday. Besides getting a big laugh, he also caused many conference attendees to nod their heads in agreement. Many of the 229 comment letters received by FASB about its discussion paper on changing the face of financial reflected similar views. That is, a new standard requiring companies to account for cash via the little-used direct cash method rather than the ubiquitous indirect method seems too costly compared to its perceived benefits. "We don't collect this type of information [required by the direct method]," asserted Bond, a panelist at the conference. "That's not the way our ERP system is set up to do things." Steve Whaley,
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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