Study Group: Valuation Academic Experts (US)(?)

Internationalization of business and capital markets has resulted in an economic environment that would be improved by uniform procedures for financial statement preparation. This would benefit investors, lenders, financial analysts, accountants, and auditors. The IASB has developed International Financial...

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...

Management announces several topics, including an upcoming restatement of previously issued financial statements due to revenue recognition issues. The reported Form 8-K of the company reveals that the investigation into prior option backdating issues yielded other financial statement flaws.