Skip to Main Content

Spring 2016

MAQ Spring 2016


By Nathan H. Jeppson, Ph.D., CPA; John A. Ruddy, CPA, CFA; and David F. Salerno, Ph.D., CPA

For at least 20 years, companies and regulators have been debating which method of presentation for cash flows from operating activities is better--the direct method (DM) or the indirect method (IM). Both the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued guidance, but the discussion seems to be ongoing.

By William R. Bigler, Jr., Ph.D., and Chengho Hsieh, Ph.D.

Combining the strategic concept of dynamic capabilities with the finance concept of optimal capital structure generates some profound insights about making capital structure decisions and yields some intriguing questions for further examination by accounting and finance professionals.

By Paul W. Farris, DBA, and Mark E. Haskins, Ph.D.

Management accountants are in a unique position to facilitate the alignment between operations and corporate finance. With the tools the authors present, they can easily translate an operation’s typical earnings before interest and taxes (EBIT) focus into corporate finance’s traditional asset utilization and value-creation focus.

By Lana L. Becker, Ed.D., CPA (inactive); Jean Garner Stead, Ph.D.; and W. Edward Stead, Ph.D.

Sustainability reporting is becoming more prevalent, and stakeholders are increasing their demands that companies’ sustainability efforts be more accountable and transparent. As part of this effort, corporate reports must be accurate and complete. The authors explain some things companies can do to ensure they comply correctly.