GLG News by Inventory Accounting Experts (US)

General Motors (GM) made headlines last week when the company announced a large $39 billion charge to establish a full valuation allowance for its deferred tax assets in the U.S., as well as Canada and Germany. Given the considerable attention by the media and multiple questions I’ve received regarding...

An accounting project is currently in the works that could significantly change the way financial statements are presented. The most controversial part of the proposal appears to be the potential elimination of net income – and (logically) the potential elimination of a single EPS figure. This...

The cash flow statement is often considered to be one of the “cleaner” areas of the financial statements. However, there are numerous ways in which operating cash flow (and free cash flow) can be manipulated within the boundaries of U.S. GAAP.  The "Analysis" section below provides a...

The SEC recently gave final clearance to a company approving the use of ESOARS instruments as a valuation method for stock options under SFAS 123R.  The "Analysis" section below gives an overview of ESOARS and discusses certain criticisms of this new controversial way to value...

The Public Company Accounting Oversight Board (PCAOB) recently released a report discussing the most serious and common problems it found during its first three years of inspections of “smaller” U.S. public accounting firms.  The "Analysis" section below lists the 11 problem areas the PCAOB...

The SEC is seriously looking into the potential for manipulation relating to the use of “10b5-1” stock-trading plans for corporate executives.  The ultimate fear is that certain executives are in fact trading on insider information and using these trading plans as a cover.  There have been...

A large hedge fund based in London recently made headlines by publicizing a critical letter that it sent to the board of CSX Corporation (CSX).  The letter raised several concerns and called for a broad slate of improved practices and performance at the large Class I rail carrier. ...

This post specifically discusses the potential for significant distortions to operating cash flow due to material levels of investments in marketable “trading” securities.  The "Analysis" section below provides some actual public company examples of how operating cash flow can be impacted and gives...

The SEC and FASB (and others) in recent years have been helping to lead a major national effort to reduce the complexity in financial reporting.  The analysis section below argues these parties will be fighting quite a headwind going forward with the significant number of new, pending...

This post specifically discusses an accounting project currently in the works that could significantly change the way financial statements are presented.  The "Analysis" section below discusses and gives examples of various alternatives to the financial statements currently being considered. ...