Clean Surplus was mentioned in the Research Project (bottom of post) here: http://wp.me/p1PgpH-F8
Clean Surplus Accounting
Clean surplus accounting is calculated by not including transactions with shareholders (such as dividends, share repurchases or share offerings) when calculating the return of an organization. Current accounting for financial statements requires that the bottom-line items from the balance sheet and income statement—(book value and earnings)—and its format requires the change in book value to equal earnings minus dividends (net of capital contributions).
The key use of the clean surplus theory is to estimate the value of a company’s shares (instead of the more lengthy discounted dividend/cash flow approaches. Secondary use would be an alternative to CAPM to estimate the cost of capital.
The book on clean surplus accounting has been added to the book folder–Thanks Dustin. (I will submit an index of this folder by tonight so you can be aware of what investing books are now available). The book added is here: Book-on-Buffett-Methods-of-Clean-Surplus