Study Group: Cash Flow Analysis Academic Experts(?)

Depending upon management's classification of a security (i.e., either "trading" or "available for sale"), a charge may or may not appear on the income statement in the same period as the write-down on the balance sheet. If the security is classified as a trading security, the charge on the income...

Investors fled General Motors following the release of its Q3 results.  The reported loss for the quarter was $38.96 billion of which 99% of the loss ($38.6 billion) resulted from the write-down of deferred tax assets.  Have investors overreacted to the noncash charge or is the decline in...

The new pension accounting standard requires companies to book on their balance sheet the entire pension asset/liability. Typically, companies have higher liabilities and lower equity if pensions are underfunded. IBM has underfunded pension plans, but it adopted the standard by a decreasing equity...

The company identified 2 accounting issues that were mishandled by the company.One is a misapplication of GAAP. The other is estimation error.These may indicate that the company's accounting, reporting and control systems may have problems, with future negative news to come.

Option-related restatements are indicative of control problems, as well as potentially managerial opportunistic behavior. While the option effect may be small, companies often find additional issues that need restatements or other corrective actions (management changes), resulting in further negative...