Discussion of the Use of Mathematical Models in Financial Accounting

Writing a survey of the use of mathematical models in financial accounting is a very challenging task. I would not have guessed that it could be done so well and in such an interesting fashion before I read Verrecchia's paper. This is not to say that I do not have some reservations and quibbles about parts of the survey, but they are largely inconsequential compared to the things I admire in this paper. Beginning with section 3 of this discussion, my remarks are organized along the lines of the paper itself.