Berkshire Hathaway Case Study Example | Topics and Well Written Essays - 250 words

Berkshire Hathaway - Case Study Example Warren Buffett did not overreact in firing Peat Marwick. There was no time that could be given to Peat Marwick to correct the mistakes that were made in their accounts. From the quotes, Berkshire there was no sense in accounting books of Peat Marwick Reverse in 1984 annual report was done to treat sales of stock not as a dividend distribution. The auditors have considered the potential for future transactions in their decision as thy compared the reports with those in 1983. There were many necessities in restating 1983 financial statement to be much considered in 1984. The treatment with proportionate stock redemption enables correction of errors that occurred in previous instances. Handling of the issue would not have been different in today’s context since accounting has not much changed from the time the corrections were made. Principles of accounting used are still recently