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Highlights From New Constructs Investment Research

Danger Zone 11/4/13: XBRL (eXtensible Business Reporting Language)

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The potential utility of XBRL as a tool for regulators to fight fraud and investors to better analyze companies makes its numerous flaws that much more of a shame. I can only hope that the SEC realizes the value of XBRL and makes a commitment to ensuring the accuracy and validity of XBRL data.

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Interview With Former FASB Chairman Robert Herz

Interview With Former FASB Chairman Robert Herz

As the Chairman of the Financial Accounting Standards Board, or FASB, from 2002 to 2010, Robert Herz has had a much larger influence on financial markets than the average investor appreciates.

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Red Flag Report: Hidden Expenses/Income: What You Don’t Know Can Cost You

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Most investors are not aware that companies hide one-time and unusual charges and income inside normal, operating line items (e.g. “Cost of sales”) on their income statement. These hidden items can mislead investors by artificially decreasing/increasing GAAP earnings. We found 13,000+ one-time items buried in normal line items like “Cost of Sales” by studying the Footnotes of 10-K filings from 1998 thru 2/15/2011. This research revealed that companies have concealed over $41 billion in one-time items.

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XBRL: Digitial Needles In the Digital Haystack

XBRL: Digitial Needles In the Digital Haystack

We have always known that finding data is the Footnotes is, for most investors who are without our patented Research Platform, like searching for needles in a haystack. With XBRL, the only difference is now investors can search for digital needles in a digital haystack. Funny how little things change.

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