Professor Elam

Friday Feb 12 2016

Boeing shares dropped on questions about its use of program accounting.

Ethics students looking for a topic should consider this one. BA has been dropping this year and now the plunge begins again.

Program accounting, which is a method of long term recognition of profit on construction, is apparently GAAP.

In bear markets, all news tends to be bearish. This is a good example, no one questioned program accounting until the mood went negative on Boeing, now even its accounting methods are

in question. Note the 6.8% drop in one day.