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Temptations of Managers Providing Guidance to Investors

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What temptations might managers face if they have provided earnings guidance to investors and later find it difficult to meet the expectations that they helped create? Explain.

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Issuing projecting earning statements began in the 1980s but required cautionary language to be ncluded. One problem created by this was that earnings guidance was used to lower the expectations of stock analysts so that when the real numbers came out the stock would then jump when it ...

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This solution details the the temptations that managers might face in relation to investors and also explains how expectations might not be met in the future. All references used are included.

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Statement of Cash Flows: Time for change! SFAS No. 95

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As contained in the Week Four electronic reserve readings article readings, this article, Broome, O. W. (2004, March/April). Statement of cash flows: Time for change! Financial Analysts Journal, 60(2), 16. , describes the current SFAS No. 95 requirements for the statement of cash flows, cites recent cases of abuse and disinformation involving the statement, and makes significant recommendations for improving the statement. Based on the comments in the article do you think the three sections of the statement of cash flows provide enough information for the reader? Of the three which provides the most information or is this an 'it depends' answer?

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