Obama's Shrinking Unit of Account

What Bill Clinton did for fidelity, Barack Obama has done for honesty and is now doing for responsibility.  Using generally accepted accounting principles (GAAP), I'll explain. Unit of account is a GAAP concept that refers to an entity for which results can be clearly distinguished and accountability logically required.  It might be an operating segment, a reporting unit, the whole company, or all of the above.  Whether a company comprises one unit of account or several, in the business world, executive management is responsible for them all. This concept of a large unit of account and broad responsibility for senior executives (with its implications for both credit and blame) is the standard Michelle Obama had in mind when she said, "For the first time in my adult life I am proud of my country."  She linked her husband's achievement with the entire country -- a big unit of account.  The Japanese would agree with this standard.  From hara-kiri to the...(Read Full Article)