... to determine the relevance and materiality of accounting information. Instead of computing accounting ratios separately, we apply multivariate analysis as to explore the “data space” of the balance sheet of our example company: 3M. We study ten‐years of quarterly balance sheets and discuss some trends...

...Eric Melse To this day, triple‐entry accounting and momentum accounting are seldom applied. We regret this because of the growing need for more forward‐looking information by management and external stakeholders and the apparent lack of theory and practical solutions. The ever‐increasing pace...

...Michael Mainelli; Ian Harris The use of a deterministic numeric paradigm in auditing and accounting may well be the root cause of many current problems. This paper argues that risk‐based accounting methods should start using probabilistic inputs which would show resultant distributions as output...

... will we derive any benefit?” Measures of profitability that take into account the risk level of the capital used to produce the profit are generally called either return on risk‐adjusted capital (RORAC) or risk‐adjusted return on capital (RAROC). These have become increasingly important for managing...

... is pressing indeed. © MCB UP Limited 2000 Capital Risk Financial institutions Accounting Economics RISK MEASUREMENT Enhancing risk measurement capabilities The quality and versatility of risk measurement tools within financial institutions have improved dramatically in the past five years...