1. financial services
CPA group unveils new accounting model
“We knew we had to focus on capturing and measuring the value that is created through sustainability strategies,”
said Joy Pettirossi-Poland, task force co-chair, in a statement.
PBN Staff Writer
CRANSTON – A Rhode Island Society of CPAs task force last week announced a new accounting model it says “re-
conceptualizes traditional financial statements.”
The task force says the new model recognizes assets and liabilities that aren’t fully valued in generally accepted
accounting principles, including “human capital.”
“We knew we had to focus on capturing and measuring the value that is created through sustainability strategies,”
said Joy Pettirossi-Poland, task force co-chair, in a statement. “If there is one profession that relies most heavily on
‘human capital’ than any other, it is the CPA (certified public accountant) profession. And, because we’re in a new
economy, we need new metrics to quantify and assess these intangible value drivers.”
RISCPA is a statewide association for certified public accountants. The new model is the first phase of the task
force’s “Intangible Asset Valuation,” which will move forward with the following goals and objectives:
 Continue to flesh out the financial valuation concept of intangibles as assets and liabilities
 Identify evidence that shows the link between financials and traditional entries on financial statements
 Create analysis that leads to recommendations and action plans
 Select additional members top participate on the task force
“Although many organizations are developing metrics, to the best of our knowledge, no one has yet created a hybrid
set of financial statements that integrate qualitative and quantitative assets and liabilities,” said co-chair Michael
Kraten, professor at Providence College School of Business. “A central goal of the task force was to determine how
one places a ‘qualitative’ asset or liability on a balance sheet and I’m delighted to say that we rose to the challenge.”
A celebratory kick-off event is scheduled for April 16 to celebrate findings from phase one, according to a press
release.