Buffett Accounting ‘Nightmare’ Fuels First Loss in Nine Years [Bloomberg]
Although new rules that require unrealized gains and losses from equity investments “will produce some truly wild and capricious swings in our GAAP bottom line,” Uncle Warren recommends looking at Berkshire Hathaway’s operating income as “a better barometer” of the company’s performance. It increased 49 percent to $5.29 billion in the first quarter.
Tesla’s Numbers Are Even More Dramatic Than Its CEO [WSJ]
The bond price, net working capital, and free cash flow, among other metrics, are not looking so hot.
See also: Elon Musk trolls Warren Buffett
AmTrust Has Been Under an SEC Investigation for Five Years [WSJ]
We’ve noted stories about AmTrust that have included auditor spying and a beautiful woman laughing at bad accounting jokes, and all this has been going on while the company has been under an SEC investigation for 5 years. The company finally disclosed this fact last week, with a bleak outlook: “AmTrust said it can’t predict when or how the inquiry will end or whether it could have a material impact on the company.”
Previously, on Going Concern…
On Friday, I wrote about EY’s settlement with a now-former partner over its failing to act on her sexual misconduct complaint against an also-now-former partner.
In Open Items, someone is asking about federal jobs.
From the archives: Deloitte Manages to Tone Down Its Response to This Year’s PCAOB Inspection Report
In other news:
Get the Accounting News Roundup in your inbox every weekday by signing up here.
See something we missed? Have a tip, correction, comment, or complaint? Email us at email@example.com.