It’s generally accepted that a lot of accounting isn’t, well, generally accepted . . . click on the following link for the article: www.accountingtoday.com

Dave Tate, Esq. comments. Fuzzy-math v. fuzzy-reporting v. fuzzy-presentation v. fuzzy-accounting?  I don’t necessarily agree with the “fuzzy” or that “a lot of accounting isn’t, well, generally accepted.” Viewing the issue as an attorney, CPA and audit committee member, each situation must be evaluated on a case-by-case basis. If the rules aren’t absolute, or are vague, discretionary or subject to interpretation, you are going to have these differences, and it doesn’t mean that the company did anything wrong – it might simply mean that the SEC has a viewpoint that is different than the company and the company’s external auditor. The accounting/auditing pronouncement authorities are shifting to a more “principles” based accounting approach, and away from some of the exact rules. I have previously commented that this “principles” based approach, which was the approach at the time when I first became a CPA, also may lead to more uncertainty and discretion. Most likely these situations will be increasing in numbers.