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Themes & Topics
Valuation: Accounting vs. Finance

News Stories

Accounting Manipulation

• AOL and SEC Reach Pact on Profit Report (WashingtonPost, September 29, 1998)

• Cendant Projects Greater Profit Impact From New SEC Rule on Recording Sales (WSJ, September 30, 1998) Subscription Required

• Sybase Posts Loss Of $25.5 Million Improprieties result in restated earnings (sfgate, January 29, 1998)

• How One Company Sweeps Losses Onto Its Balance Sheet: If Brightpoint hadn't, its profits wouldn't have made estimates (sfgate, January 28, 1998)

• Sybase Joins Its Brethren Database maker forced to restate its earnings (sfgate, January 22, 1998)

• How Companies Use Distributors to Distort Their Earnings / Was Media Vision just the tip of the iceberg? (San Francisco Chronicle, June 19, 1997)

• SBC Sees $2 Billion Write-off (San Francisco Chronicle, June 20, 1997)

• Accounting magic 101 (Forbes)

Economic Value Added (EVA)

• Getting EVA Right

• Stern Stewart & Co: The EVA Company

• Economic Value Added theory provides a new way to value companies. Where does high tech fit in? (Red Herring, January, 1998)

• SPX Corporation

Earnings Per Share (EPS)

• The Difference Between Diluted, Basic EPS Rule forces companies to report both (San Francisco Chronicle, February 2, 1998)

Market Value

• Balance sheet doesn't reflect assets' value (San Francisco Chronicle, October 19, 1998)

• Which Firm Has Top Market Value, GE or Microsoft? Let's Consider the Options (WashingtonPost, July 21, 1998)

Other

• Swollen Pension Funds, Surprise Profits: Many Big Firms Reap Benefits as Bull Market Inflates Value of Retirement Plans (WashingtonPost, June 14, 1998)

• Lotto Prize Brokers Hit Jackpot Companies buy and resell annual payments from winners (SF Chronicle, April 11, 1998)

Bloopers & Blunders

• Cash Flow and Value

• Dilution (1) A decrease in the proportion of income to which each shareholder is entitled, (2) A decrease in the % ownership of individual shareholders. Value Dilution Caused By Acquisitions: AOL, CompuServe

• Earnings vs. Value: FASB Proposition and EPS

Finance By Example (Archives)

Accounting Manipulation

• America Online (AOL)
• Are Companies Using Restructuring Costs To Fudge the Figures?

Value of Firm

• Mergers: U.S. West Media group agreed to acquire Continental Cablevision Inc. for $5.3 billion
• Value Maximization and Market Share

Handsome Returns on Sex Scandal Domain Names