Would you invest in an IPO that uses non-GAAP measures? If not, why not? If yes, under which circumstances? That is, how would you determine which items are ok for the firm to strip out of GAAP earnings?
What cash flows are difficult to classify? How could one of the “misclassified” cash flows affect firm valuations?
The PCAOB reports to the SEC and the SEC has now made its criticism of the PCAOB public. Should they have done so? What are the implications of the public disagreement? Should former auditors run the PCAOB, rather than attorneys and career governmental employees? Why or why not?
If you were the CFO of a US company, what factors would you consider in deciding whether to report BOTH IFRS and US GAAP financial results? Do you think many companies will exercise the option to report both, if the option is offered?
In your opinion, what are the benefits of allowing management to provide alternative performance measures (non-GAAP metrics)? What are possible costs or potential problems?
When should revenue be recognized in the mobile (e.g., iPhone) gaming industry? Why does it matter if it is recognized at the time of payment or over the life of usage, particularly if the average period of use is so short?
How many times have you heard that the sky will fall if leases are moved from the notes to the balance sheet?
Do you think it should be up to the registrants to decide what information is relevant for investors? Who else should decide what disclosures are relevant?
How do you think the SASB will affect financial reporting? Auditing? Firm valuations and investor decisions? Why do you think the board of the SASB wanted the former head of the FASB, the former chair of the SEC, and the former mayor of NYC?
Why do you think that the demand for accounting and finance professionals is so strong, leading to expected compensation increases? How much do you think you will earn in your chosen field upon graduation?
What are the various causes of underfunded pensions? If you were CFO of a company with a DB plan, what factors would you consider in deciding whether to transfer your pension to an insurance company such as Prudential? Should taxpayers be responsible for the PBGC?
In your opinion, how much equity should be included in executive compensation packages? How would you determine an appropriate amount?
Do you agree that newly required disclosures of environmental and social issues will increase the EU’s competitiveness and create more jobs? If so, how? If not, why not?
In your opinion, what is the “value added” to society from such policing of “plain English” requirements of SEC filings?
If the SEC allows non-US registrants to use IFRS, why shouldn’t US registrants be allowed to do so as well? What is the downside of allowing US registrants to file using IFRS?
If there are so many deficiencies in the audit of revenues, what do you think are the reasons? What do you propose as a solution? What are possible consequences for investors if revenues are misstated?
Do you agree with the editorial that credit rating reforms will be ineffective? Namely, will greater disclosure about borrowers’ credit ratings reduce the likelihood of another financial crisis? How should credit rating agencies be paid for their ratings?
Will you personally consider a firm’s “good deeds” in deciding whether or not to take a job? Why or why not? Do you think such deeds affect the value of the firm? If so, how? If a firm donates time or money, what’s the journal entry?
So managers will be required to give early warning about whether their firm is a “going concern.” Do you believe this increased disclosure by managers is beneficial? For whom? Is it possible that such disclosures could become self-fulfilling? How so?
