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/import/616229 This is a case on Alphabet (Google’s parent company). http://www.berkshirehathaway.com/letters/2018ltr.pdf 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 1 page outline of how you would change the accounting standard. USE YOUR RESOURCES–there are accounting professors and others who have spent time on this topic.
Imagine that you will be presenting your concerns and data to homeland security officials. Your PowerPoint should convince your audience to take a course of