Certain firms have large amounts of cash virtually trapped overseas? Why “can’t” they bring it home (to the U.S.)? How much debt can they reasonably issue in lieu of bringing the cash home? What are some of the consequences of issuing so much debt?

The SEC is (again) planning to crackdown on non-GAAP disclosures. How will they do that? Will firms simply stop using them? Will the SEC give an approved list of non-GAAP disclosures? Is GAAP the “problem”?

If you are interested in a career as a CFO, do you think you can add these dimensions to your resume?

Do you think the proposed goodwill impairment test will result in major changes in the magnitude of goodwill impairment charges? Will it matter to the capital markets if this proposal is passed?

Do you believe the author that capitalism is in crisis? Do you have counter arguments to the “evidence” (such as money spent on share repurchases)? That is, is it reasonable to assert that share buybacks indicate the system is in crisis?

Do you think the proliferation of non-GAAP measures is due to the accounting standards requiring firms to provide meaningless data to investors? In other words, are the accounting standard setters themselves responsible?

Can you explain currency neutral revenues? Are firms required to give effects on revenues of FX changes? If so, where? What can firms do to counter the effects of FX on top line?

Do you think the new revenue recognition standard will open the door to financial shenanigans, given the new focus on judgment and broad principles? How would you be able to tell if this is the case? How will the SEC monitor revenue recognition?

Can you follow Fitbit’s numbers reported in the article and in the 8-K filing? The 8-K Filing is below in the next entry.

Fitbit’s 8-K (click on Ex. 99). Try to follow the numbers mentioned in the above article. What’s driving the reduced profitability?

Most firms give some non-GAAP measures in their 10-Ks. If you are the CFO or Controller or General Counsel, what steps would you take to protect yourself and the firm against an SEC enforcement action re: improper non-GAAP disclosures?

Do you think that P&G’s CEO should have given specifics re: $10 billion in proposed cost savings? What are the benefits of being specific? What are the costs? What are some ratios that might be affected by costs savings? How might the firm’s share price be affected?

The issue of whether firms should be allowed to give non-GAAP (or pro forma) numbers continues. How would you design a disclosure system that would accommodate pro forma numbers so that critics of the practice would be satisfied?

Do you find this plausible, namely that CPA credentialed CFOs are more risk averse with regard to investment decisions, compared to non-credentialed CFOs? What does this suggest for you in your career path?

Pay is increasing significantly for accounting and finance professionals. Does this help you to keep doing boring homework?

There is a “dearth of talent” in technology companies. Pay is increasing, including the use of stock-based compensation. Would you want stock (stock options/restricted), or would you prefer cash? How would the choice affect your behavior on the job?

Intel plans to layoff several thousand employees. What is the name of the expense charged against income? How is this charge measured? Is there a stock price reaction? Why or why not?

Relative to restricted stock compensation, why are stock options “becoming more out of favor with shareholder advocacy groups”? Do you think this is justified? Why?

The FASB changed how firms record excess tax benefits or tax deficiencies associated with stock options and restricted stock. How does using an income account (tax expense/tax benefit), rather than APIC, simplify the process? Do you believe users of financial statements will react to the change? If so, how? What will be the associated effect on Diluted EPS?

Accounting errors, revisions, restatements are down over the past decade, but they still are nontrivial in many cases. How would you determine whether the issues cited are relevant to market participants?