Pondering the SEC’s Next Move on Non-GAAP: Thoughts From Audit Analytics & The Analyst’s Accounting Observer

Our friends at Audit Analytics, who do some really great work with audit and accounting firm data, compiled data on SEC comment letters sent to companies on their non-GAAP earnings presentations in recent years. We put our heads together to surmise what might lie ahead when the SEC’s Division of Corporation Finance makes good on…

Scoring Many Ways At comScore

Yesterday’s Wall Street Journal featured two articles in the Money & Investing section that go together like peanut butter and chocolate. (And neither one had to do with Hershey.) In the first article, “Heard On The Street’s” Miriam Gottfried penned a feature about comScore’s “squishy math” in the firm’s calculation of achieving stock price targets…

Reimagining SEC Regulation S-K

In April, the SEC took another step in the long and winding road of its disclosure effectiveness project, which can be traced as far back to the JOBS Act of 2012. It issued a 341-page concept release, recently summarized for subscribers of The Analyst’s Accounting Observer. It’s not a thrilling document for investment management practitioners,…

Baruch Lev: “The End of Accounting”

From this week’s edition of Barron’s, I learned that NYU Stern School of Business accounting professor Baruch Lev has co-authored a book with Feng Gu, professor at University at Buffalo School of Management, entitled The End of Accounting and the Path Forward for Investors and Managers. That’s disappointing for me – because it’s going to…

SEC to Alibaba: “Open (your books) Sesame!”

Alibaba has disclosed that the SEC is looking into the commerce giant’s accounting. This excerpt from their 20-F doesn’t put a lot of details out there, but it’s enough to pique the curiosity: “Earlier this year, the SEC informed us that it was initiating an investigation into whether there have been any violations of the…

Valeant’s Lessons about Non-GAAP Reporting Pitfalls

Valeant Pharmaceuticals and non-GAAP reporting: two topics that the press can’t seem to get enough of. They’re the peanut butter and chocolate of the financial world for journalists. It would be almost negligent to not examine the lessons that Valeant might offer about the over-reliance on mongrel metrics. At the risk of beating a horse…

Tax Day Came Early This April

And it promises to stay a hot issue for a while. Arriving first was the news of leaked documents from Panamanian law firm Mossack Fonseca that identified scores of politicians and celebrities with secret offshore accounts. The investigative types – Justice Department, the press, etc. – have barely had time to digest this. It’s a…

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