Author Archive | Jack Ciesielski

Volume 26, No. 4

Over-explained Earnings: Current Non-GAAP Earnings Trends in the S&P 500:   Investors have long concocted earnings adjustments because they want earnings from one company to be more comparable to those of another, or to make a company’s current earnings comparable to the earnings of a prior year. It’s an exercise in reading earnings reports and…

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Volume 26, No. 3

Guide to A Dying Art: Looking for What Matters in the 2016 10-Ks: In an investing world long ago and far away, reading a firm’s 10-K and annual report was a traditional winter and early spring investor activity – right up there with management meetings and earnings calls. The digital revolution of the last twenty-five…

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Volume 26, No. 2

The FASB’s 2016 Trail – And Where It’s Heading This Year : In an increasingly non-GAAP investing world, it’s often forgotten that standards come into being to solve a reporting problem – be it a total lack of financial information, inconsistent financial information or misrepresented financial information. Non-GAAP presentations ignore the fact that standards make…

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Volume 26, No.1

Looking Back: What Happened in Business and Accounting in 2016:  While we’re busy trying to make history, we rarely – if ever – make time to learn from it. The year just ended has been constantly lamented by the media as one of the worst years EVER, depending on one’s political point of view or…

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Volume 25, No. 13

What Keeps The SEC Busy – 2017: The American Institute of Certified Public Accountants held its annual “Current SEC & PCAOB Developments Conference” in Washington, DC earlier this month. Speakers came from all major accounting regulators and standard setters: the PCAOB, the FASB, and the IASB. Also in attendance: hundreds of CPAs searching for their…

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Volume 25, No. 12

Coming Soon: Statement Of Cash Flows Fixes In March, the FASB released Accounting Standards Update No. 2016-15: “Classification of Certain Cash Receipts and Cash Payments.” How can that not grab your attention? The standard giving rise to the cash flow statement originated in 1987, almost thirty years ago. Scores of standards have been issued since…

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Volume 25, No. 11

Early Birds: Why Firms Are Changing Accounting For Stock Compensation: Last March, the FASB released Accounting Standards Update No. 2016-09, blandly entitled “Improvements to Employee Share-Based Payment Accounting.” The FASB’s simplification binge of the last few years reached stock compensation accounting, much to the delight of financial statement preparers. Stock comp accounting is full of…

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Volume 25, No. 10

The Non-GAAP Habits of Serial Acquirers in the S&P 500:  The non-GAAP earnings presentations of actively-acquisitive firms often include adjustments related to their current acquisitions, as well as the lingering “integration effects” of prior acquisitions. All manner of acquisition activity-related adjustments is fair game. They’re plentiful – and large.  In our March report on non-GAAP…

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Volume 25, No. 9

SEC: On the Hunt for More Disclosure Simplification:  Just like food nourishes and sustains the human body, the information contained in the financial statements is the foodstuff of investment decisions. Sure, some investors might base their decisions on the work of analysts instead of looking primarily at the financial statements – but someone, somewhere turned…

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Volume 25, No. 8

PCAOB: Have “Critical Audit Matters” Reached “Critical Mass?”:  Five years ago, the Public Company Accounting Oversight Board (PCAOB) issued a concept release with the intention of garnering feedback on a revolutionary idea: bring the auditor’s report into the twenty-first century. The PCAOB received feedback, but mostly in the form of brickbats. In retrospect, the concept…

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