Discussion of The Use of Mathematical Models in Financial Accounting.

The article presents a critique of Robert E. Verrecchia's article "The Use of Mathematical Models in Financial Accounting," which appeared in the 1982 supplement issue of this journal. The author discusses the way that Verrecchia organized his paper around the areas of social welfare and the public disclosure of accounting information, capital market information efficiency, and the correlation between disclosure and private data. The article concludes that Verrecchia's analysis of mathematical models in accounting is excellent and meets its own criteria for evaluation.