Universal Benefits of EarningsPower Accounting™

For Equity Investors:

• Provides a recurring permanent net income estimate that is directly usable for price-to-earnings ratio analysis, the most basic type of equity investment analysis
• Provides (Economic Value Added) (EVA)-like measurement for individual asset and liability holdings, facilitating capital allocation evaluation
• Separates operations and asset-and-liability-holdings performance, facilitating management evaluation
• Provides the most accurate, valid, timely, and useful accounting for better financial decision making
  

For Creditors:

• Embraces mark-to-market accounting, providing asset and liability values based on current market conditions
• Provides the most accurate, valid, timely, and useful accounting for better financial decision-making
  

For Companies:

• Eliminates operation distortion caused by financial accounting considerations
• Provides the means to report earnings power performance
• Simplifies financial accounting and financial statement preparation
• Provides the most accurate, valid, timely, and useful financial data for superior internal decision-making
  

For Regulators:

• Gives a more comprehensive and current financial picture of regulated companies, promoting superior decision making
  

For Accounting Standards Setters and Academics:

• Provides a simpler and more advanced conceptual framework
• Provides conceptual tie with financial theory, namely, embracing both the present-value perspective and the asset-value random-walk hypothesis
  

Tax Authorities:

• Makes a sharp distinction between recurring income and capital gains, two alternative tax bases
  

For Society:

• Provides improved economic performance resulting from improved information and transparency