12 Jan GAAP Is a Point, Not an Oval!You are the chief fin
GAAP Is a Point, Not an Oval!You are the chief financial officer (CFO) of Lorien Company, which is publicly traded. At the annual shareholders’ meeting you discussed the company’s recent reported results. As part of your presentation, you illustrated the minimum and maximum values for net income that Lorien could have reported using a range of accounting assumptions other companies in your industry use. Your statement prompted a cry of outrage from one of the shareholders present at the meeting, who accused you of being an unprincipled liar. This shareholder stated that any suggestion that there is a range of possible net income values for a given company in a given year indicates an overly liberal approach to financial reporting. This shareholder has moved that your employment contract be immediately terminated because of an apparent lack of moral character. The shareholder’s arguments have been persuasive to a large number of people at the meeting. What can you say to defend yourself?