PAINTINGS 2 - Financial Markets
To GAAP or not to GAAP -- That is the Question
Oil on canvas
36 x 36 inches
The number of companies in the S&P 500 that report their financial results exclusively using GAAP (in a cheery, bright green based on an Ellsworth Kelly painting, a large trapezoidal shape tilts down and to the right. It represents the growing number of companies in the S&P 500 that are reporting their financial results using customized, “adjusted” figures instead of exclusively using Generally Accepted Accounting Principles (GAAP). The fresh, vibrant nature of the green dominates and distracts from the declining white wedge of companies that still report using GAAP only, a more consistent and transparent accounting standard. The white wedge marks the proportion of companies using GAAP only, declining from 25% in 2006 to 5.7% in 2015.