Keep Your Sarbanes-Oxley Off My CFO

Harvard Business Review

No, Minow is suggesting that CFO essentially work for the audit committee. As she puts it, when she's evaluating a company, "the most important thing I look for in a CFO is someone who reports directly to the audit committee, because what I want is a CFO who is absolutely clear that his or her job depends on telling the truth to the board.". I don't know of any CFO of a public company who would tell you that the job doesn't already depend on telling the truth to the board.

CFO 12

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

One CFO said that her valuation should be considered on a per idea basis instead of a per earnings multiple. One CFO commented that standard setters enjoy monopoly power and have no incentives to change their methods to be more responsive to investors. Another CFO mentioned that it will take a full-blown crisis, such as the 2000 dot-com meltdown, to force substantive changes in the standard setting process. Analysts increasingly rely on non-GAAP metrics.

GAAP 35

Midsized Firms Can Survive a Cash Crisis

Harvard Business Review

To use a different company example, one growing financial services firm’s new CFO learned this in 2004. The CFO couldn’t understand why. Cash revenues were indeed $200 million for the year, but the correct GAAP net revenues were only $30 million and profit was $2 million. If the CFO has a realistic budget, it’s much easier for a midsized company to borrow money. Operational meltdowns can devour a midsized company’s cash.