Accounting and Trust Q Are financial reports reliable and objective n The inherent limitation of financial accounting; Monetary measurement: penny wise and pound foolish; Where to put Bill Gates on Microsofts Financial Statements? Historical cost, accrual basis, periodic report: Financial reporting are lagged, no matter good news or bad news n Be aware: all managers, including accountants, are REMMS Accounting comes down to the-vehicle-for-bank-robbe AAll the blames to accounting for its "unique role"in Yinguangxia, Enron, WorldCom, etc. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity6 Accounting and Trust ⧫ Are financial reports reliable and objective?  The inherent limitation of financial accounting; →Monetary measurement: penny wise and pound foolish; ➢ Where to put Bill Gates on Microsoft’s Financial Statements? →Historical cost, accrual basis, periodic report: ➢ Financial reporting are lagged, no matter good news or bad news;  Be aware: all managers, including accountants, are REMMs; →Accounting comes down to the-vehicle-for-bank-robbers; →All the blames to accounting for its “unique role” in Yinguangxia, Enron, WorldCom, etc