Check cash flows of companies issuing dividend stocks
Investors should scrutinize any public company’s pension plan. The impacts on share valuation have always been significant.
Corporate Defined-Benefit plans are worse than ever.
Banks used to market income trusts to clients and advisors using a “turbo-charged hype machine.” But now, bankers are trying to resurrect income trusts, and some advisors are keen to test the waters.
Unfortunately, investors believe financial-statement auditors perform much more work than they actually do. Worse still, they think auditors will vouch for that work’s quality when things go awry.
When companies use accounting to make profits look bad
Displeasure with the International Financial Reporting Standards (IFRS) is on the rise, and will likely gain steam as annual results are issued in the first quarter of 2012. As investors begin to digest some of the quarterly numbers from last year, more have started expressing unease with the new accounting rules.
One year after the adoption of International Financial Reporting Standards (IFRS), advisors are gradually becoming more familiar with the impact of the new accounting rules. But even the close of 2011 doesn’t mark the end of the story.
Monitor related-party transactions to shield clients from white-collar crime