Many publicly traded companies prefer to use “alternative metrics” to tell their investors a story rather than the reality. Here’s why it matters…
Jason Burack of Wall St for Main St interviewed first time guest, forensic accountant and transparency reporter at MarketWatch.com, a Dow Jones publication, Francine McKenna http://retheauditors.com/
Francine’s Market Watch articles can be found here https://www.marketwatch.com/topics/jo… and they also routinely appear in the Wall Street Journal.
Francine has over 25 years experience working in consulting and as a forensic accountant including tenure working at 2 of the “Big 4” accounting firms. Francine is also now a professor of international business at the American University MBA program in Washington, DC.
Francine has uncovered or helped uncover many accounting frauds of publicly traded companies.
During this 50+ minute interview, Jason starts off by asking Francine about GAAP accounting. What is it? What does GAAP even mean?
Jason then asks Francine why companies would try to skirt GAAP accounting and if Sarbanes-Oxley was supposed to have solved a lot of the problems with modern day accounting?
1) What General Electric Is Doing To Dodge The Question: “When Will GE File For Bankruptcy?” https://www.zerohedge.com/news/2018-1…
2) GE Collapses To $8 Handle – Unchanged Since 1995 https://www.zerohedge.com/news/2018-1…
Francine talks about why many publicly traded companies prefer to use “alternative metrics” to tell their investors a story (that they want to tell them) rather than the reality of their financial statements which are in SEC filings in the form of Qs and Ks.
Francine has some very interesting insights when she talks about General Electric (GE), Berkshire Hathaway, Tesla Motors, a marijuana stock where she helped expose fraud and also the SEC cracking down on ICOs.
To wrap up the interview, Jason and Francine discuss free cash flow, Chinese reverse mergers (featured in the China Hustle documentary) and if it’s fair to criticize the Securities and Exchange Commission (SEC) for not trying to prosecute more executives for accounting fraud and other forms of fraud?
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