Five Things You Should Read

August 16, 2019

GE fights back, CFOs prepare for recession, and 3 summer reading recommendations from America's top CEOs.

Should Financial Execs Prepare for a Global Recession?

CFO

Investors on Wednesday, apparently in hysteria over the yield-curve inversion, frantically sold shares and sent the Dow Jones Industrial Average tumbling 800 points by the close. Though some believe the inversion will not be the harbinger of recession that it’s been several times in the past, CFOs must be prepared not only to substantially reduce their own investment but also for a potentially devastating hit to shareholder value. 

Lease Accounting Rule 'Crushing' WeWork's Balance Sheet

Fortune

While investors and analysts alike are examining WeWork's plan for profitability and astounding losses (to the tune of net $904 million so far for 2019), one major thing is impacting their balance sheet: ASC 842. Without the new lease accounting standard, says General Counsel, P.C.'s Richard Trimber, 'their balance sheet would be in much better shape if they could account for the old way.'

GE Calls Accounting Expert's Allegations 'Market Manipulation'

Fast Company

Harry Markopolos, the accounting expert who raised red flags about Bernie Madoff ’s Ponzi scheme, alleges General Electric has masked the depths of its problems, resulting in inaccurate and fraudulent financial filings with regulators. GE is already under investigation by the SEC and Justice Department for potential accounting issues. GE says the allegation is "market manipulation, pure and simple."

These are the States Where $1 Million in Retirement Savings Will Last the Longest

Business Insider

New data from GoBankingRates shows that $1 million in retirement savings could last more than two decades in some states. In Mississippi, a retiree could live on $1 million for 23 years. The states where $1 million in savings would last the longest include New Mexico, Wyoming, Georgia, and Michigan.

3 Summer Reading Recommendations from America's Top CEOs

McKinsey & Company

McKinsey wanted to see what CEOs and other business leaders are keeping on their shelves or tucking into their suitcases. Walmart's CEO has 'Become an Accelerator Leader: Accelerate Yourself, Others, and Your Organization to Maximize Impact' by Alvin Rohrs on his list, while PayPal's CEO has Joseph E. Stiglitz's 'People, Power, and Profits: Progressive Capitalism for an Age of Discontent.' Nextdoor's CEO recommends 'Biased: Uncovering the Hidden Prejudice That Shapes What We See, Think, and Do' by Jennifer L. Eberhardt.