Write the outline of a letter to the FASB suggesting changes
Your mission:
Untangle the accounting web created by a bunch of theory people in Connecticut (and academics, damn them :-)), who don’t really understand the consequences of their actions.
Please review the following materials:
https://hbsp.harvard.edu/
This is a case on Alphabet (Google’s parent company).
http://www.berkshirehathaway.
This is Warren Buffett’s letter to shareholders. Please also review his financial statements.
Here’s the assignment, and this one requires a combination of analysis and creativity:
You’re asked to advise people on how to review financial statements of Berkshire and Alphabet given the volatility of the gains/losses, and you’re asked to write the outline of a letter to the FASB suggesting changes to the accounting standards to better reflect reality and limit volatility in reported earnings.
Output: a sensitivity table showing the effect of changes at various levels to Alphabet and Berkshire earnings from changes in the value of their holdings as of the latest balance sheet date.
A 2 page outline of how you would change the accounting standard.
20190319234352printmgr_file (1)
20190319234403fair_value_accounting_for_financial_securities_at_alphabet (1)
Solution Preview
Accounting Principles Letter Outline
- Introduction the related to the financial statements
Given the information as provided in the financial statements, it is important to understand the company’s position, particularly taking into consideration market volatility resulting from consistent changes in government policies on market standards (Beltratti and Morana 152)
(312 words)