Good article and I'd be all for a new regulation to get companies to report direct cash flow.  Not sure what two regulations would have to go to impliment it.  Preferably not one about not having melamine in baby formula or such;)

Seriously though, cash flow and balance sheet are a better measure of corporate health and changes in condition, while income and ROE only useful over long terms.  The income statement can only be be deceiving in the short term.