【CFA Japan Seminar Announcement】
Title: The Financial Statement Disaster Buried in Equity and Credit Research Worldwide
Date: September 19th (Thursday), 2019, 18:30-20:00
Venue: Room1, FINE TOKYO, 5th Floor, South Tower, Otemachi Financial City, 1-9-7 Otemachi, Chiyoda-ku, Tokyo
(For those who take the subways to come: From Tokyo Metro Otemachi Station, please use the passageway directly connecting to the first basement floor of the building. Then take the South Elevator from the first basement floor or the first floor to the fifth floor.
For those who come from the surface street: Please enter the SouthTower, Otemachi Financial City from FINE TOKYO Entrance that is across the street of Sankei Building. Then take the South Elevator from the first floor to the fifth floor.)
Specialty Focus Areas: Financial Statement Analysis (CE credit eligible)
Speaker: Professor Joel Litman (President & CEO, Chief Investment Strategist, Valens
Fee: CFA Japan Members, CFA Members of other societies, Associate Members, Professional Members：Free, Candidate Non Members: JPY 2,000, Non-members: JPY 3,000
"We are witnessing an erosion in the quality of earnings, and therefore, the quality of financial reporting."
Exactly as stated by the longest running chairman of the US Securities and Exchange Commission.
"Inconsistent" "Misleading" "Misunderstood" "Inaptly named" "Undesirable"
Words used by three of the seven FASB board members about the problems with the Statement of Cash Flows when dissenting to its framework as it exists today (Lauver, Leisenring, Sweiringa).
"GAAP is not truth or reality"
Spoken in regard to conducting credit and equity analysis, according to the late, great Professor Martin Whitman, one of the greatest bond investors of the last 40 years.
"...the net earnings figure… it really is not representative of what's going on in the business at all."
Stated by Warren Buffett at the 2018 Berkshire Hathaway Annual Shareholders meeting in Omaha - in the first 5 minutes of his presentation.
"Always restate financials when valuing companies."
Jean-Marie Eveillard, at a CFA Society event. Morningstar Fund Manager of the Decade for Non-U.S. Stocks.
The current state of the financial statements is nothing short of a performance metric disaster.
An overwhelming majority of CFOs polled say that financial reporting is an exercise in compliance, nothing close to economic reality.
Credit investors around the world have come to find that neither the operating cash flows nor EBITDA provides an accurate measure of cash available for debt service.
The top equity investors in the world have been quite outspoken about the failure of reported GAAP and IFRS earnings and other metrics.
In this engaging CFA event with real life, up-to-the date cases, Professor Joel Litman reviews the financial statement disaster and its implications for equity and credit analysis.
As Chair of the UAFRS Advisory Council for Uniform Adjusted Financial Reporting Standards, Litman and the firm, Valens Research, have been spearheading the use of Uniform Financial Analytics.
Currently, Uniform-based research reports and/or UAFRS data are read and used by 300+ of the world's largest investment firms every month, for equity, credit, and macroeconomic research.
During the program, Litman will show how virtually no area of credit research is safe from the disaster of inconsistency and incomparability buried in the financial statements today.
Contrary to what many have come to believe, IFRS is even more troublesome than US GAAP.
Inconsistencies in M&A accounting, divestiture accounting, stock options, research and development, capitalized leases, financing costs, and off balance sheet assets are just a few of the items.
Stock research is just as at risk as every key ratio derived from the as-reported balance sheets and income statements, worldwide, are materially distorted from economic reality.
Please join us for this afternoon of deep analytical insights and extremely practical alternatives. Credit, equity, and macroeconomic analysts from the buy-side and sell-side have given this program very high ratings and comments at prior CFA Society events.
Joel Litman is President and CEO of Valens Research, a global investment research and
advisory firm, and the world leader in Uniform Accounting and analytics.
In the Harvard Business Review, Litman published, "Give My Regrets to Wall Street," and is a top contributor in SeekingAlpha. Valens Research reports are regularly the most downloaded on Factset. He has been interviewed on CNBC, Forbes.com, the Singapore Stock Exchange, the Wall Street Journal's Barron's Magazine, Institutional Investor, and regularly at NASDAQ's Marketsite.
Litman has conducted seminars and lectures for Harvard Business School, Wharton, London
Business School, and other universities and CFA societies in New York, Germany, Hong Kong, Singapore, and more around the world.
Litman is a CPA and an MBA/MM graduate from the Kellogg Graduate School of Management at Northwestern University. He is a member of the Board of Directors of COL Financial Group. (PSE:COL).