Warren Buffett Minds the GAAP.

Warren Buffett's annual letter to Berkshire Hathaway shareholders highlights his criticism of the accounting industry's method for corporate accounting. Buffett has traditionally reported Berkshire Hathaway's results using generally accepted accounting principles (GAAP), while other companies reported pro forma earnings. However, a 2018 rule change from the Financial Accounting Standards Board and the Securities and Exchange Commission now requires companies to mark stocks to market every quarter and report gains and losses as earnings. Buffett argues that this change makes Berkshire's GAAP reported earnings "worse than useless" and suggests that the previous method of reporting earnings should be reinstated. [Extracted from the article]