3 ms·
> How in the world is a balance sheet not a report that is generated by a system, viewable by any executive? Did they not have a CFO or any finance people or ac
by insaneirish 4y ago
> How in the world is a balance sheet not a report that is generated by a system, viewable by any executive? Did they not have a CFO or any finance people or accountants?
Depending on your line of business, this is actually not a simple thing when you're trying to mark assets to market in a meaningful way. When everything you own is liquid, it's one thing. When things are less liquid, it's another. This is true even of completely legitimate businesses.
- bmitc 4y agoBut isn’t that basically the line of business of an exchange and a trading firm, supposedly one specializing in arbitrage? And despite its difficulty, which I can understand, it still seems like something that should be a bit more automated than the CEO typing them into a spreadsheet a week before the company collapses and warning readers of the “obvious” chance of typos.
- Dwolb 4y agoErm yes you are correct, this is the line of business they’re in and they should have had better controls for valuing their assets. Typically there’s a 3rd party fund administrator whose core responsibilities include calculating the value (NAV) of the fund. Sometimes funds have Level 2 or Level 3 assets, which may require management effort to value and may not have real-time pricing available. https://www.investopedia.com/terms/l/level2_assets.asp https://www.investopedia.com/terms/l/level2_assets.asp https://www.investopedia.com/terms/l/level3_assets.asp https://www.investopedia.com/terms/l/level3_assets.asp