A fund manager states, “I refuse to buy any company that makes a voluntary accounting change, since it’s certainly a case of management trying to hide bad news.” Can you think of any alternative interpretation?
Answer to relevant QuestionsFair value accounting attempts to make financial information more relevant to financial statement users, at the risk of greater subjectivity. What factors would you examine to evaluate the reliability of fair valued assets?In 2011, Tata became the first Indian brand to be named in the top 50 global brands in Brand Finance’s 2011 Global 500 report, which assigned the Tata brand a value of $15.8 billion. What approaches would you use to ...James Broker, an analyst with an established brokerage firm, comments: “The critical number I look at for any company is operating cash flow. If cash flows are less than earnings, I consider a company to be a poor ...Merck is one of the largest pharmaceutical firms in the world, and over an extended period of time in the recent past, it consistently earned higher ROEs than the pharmaceutical industry as a whole. As a pharmaceutical ...Manufactured Earnings is a “darling” of Wall Street analysts. Its current market price is $15 per share, and its book value is $5 per share. Analysts forecast that the firm’s book value will grow by 10 percent per year ...
Post your question