Does Snap’s share structure, in particular, no-voting rights, affect valuation of the stock? Why or why not?
Given the fast growth of “robo” investment advisers, is it worth a student’s time even to study so-called “financial statement analysis”?
Why shouldn’t firms be able to provide non-GAAP measures as long as they reconcile them to GAAP? Do you agree with the author’s opinion in the last sentence that criticizes the presentation of non-GAAP measures?
What are the costs of changing the threshold for a firm to have an audit of its internal control? What are the benefits? What do you think are some of the characteristics of firms that are more likely to have internal control weaknesses?
What is your opinion about the acting head of the SEC removing subpoena authority from some of the SEC’s senior enforcement officials? What to you perceive as being some of the potential benefits? Potential costs?
In its non-GAAP EPS, Allergan removed “more than half of all operating expenses,” according to the SEC. If the non-GAAP EPS is reconciled to the GAAP EPS, does it matter what or how much they removed? Why or why not?
How can a write-down on oil reserves be beneficial to Exxon’s executives (i.e., “bail them out”)? How would you determine if a probe into accounting practice were “politically motivated”?
What would be your next move if you were CEO at Wholefoods? Cutting prices to compete better and appeal to wider base squeezes margins. So . . . what would you do?
Facebook had an accounting change that resulted in a $900 million boost to earnings. The FASB now requires “excess tax benefits” from stock options to flow through the income statement, rather than APIC. Does the change improve financial reporting? How?
Do you think the disclosure requirement mandated by the SEC re: conflict minerals should be abandoned by the SEC? Why or why not? What are some of the unintended consequences of the rule?
In your opinion, should all shares of publicly traded companies have equal voting rights? Should all directors be voted on annually? Why do you think Google and other tech firms have dual class shares?
Why do you think Under Armour’s shares are down 40% from its high, given the growth? What is Wall Street wanting from UA? Do you think UA will be able to deliver? If you were CEO of UA, would you want to “manage” Wall Street’s expectations? If so, how?
SAP’s free cash flow increased, giving the company additional financial flexibility. Why do you think the European investor base would rather SAP reduce debt than increase share buybacks? Is being “debt-free” an “optimal” position for any company? Does is matter if it is European or not?
So Yahoo is being investigated for the delay in disclosure re: the cybersecurity breach. If you were CEO, how would you determine, not only if you must disclose, but also by when?
Jay Clayton is the lead candidate for chair of the SEC. Do you think he is qualified? Do some of those same qualifications present a potential problem if he were to be confirmed as chair? What is the ideal candidate for the job? Does such a candidate exist?
So the SEC fined GM $1,000,000 for failing to disclose the ignition switch problem internally to its accountants so they could assess whether a loss contingency should have been booked. What is the purpose of this fine? Who will pay it? How do you think it was determined?
Do you think it is appropriate to hold individuals (such as a named CFO) liable for errors in financial reporting? Why or why not? What are the consequences for bringing talented individuals into CFO roles?
If you had the final say on who should be the head of the PCAOB, what criteria would you use? Are you for or against the proposed requirement that audit firms identify the lead partner on an audit engagement?
