FEI Weekly

November 18, 2019

Sportswear maker goes on accounting defense, another year another audit fail and making money kinda matters.

Accounting Moves “Entirely Appropriate” Under Armour Argues

Baltimore Sun

Under Armour defended its accounting practices that have come under scrutiny amid a federal investigation and media reports that the brand manipulated sales numbers to mask weakening demand for its athletic apparel. Under Armour reiterated Friday that it believes its practices have been “entirely appropriate,” saying management and the board have “reviewed this matter extensively over the past two and a half years and stand by the company’s financial reporting.”

Second Try No the Charm For Pentagon Audit

Reuters

The Pentagon has made progress toward fixing accounting discrepancies, but has failed a comprehensive audit for a second year. Last year, Acting Secretary of Defense Patrick Shanahan said the Pentagon had failed here its first-ever comprehensive audit, receiving an opinion of "disclaimer," for findings that do not meet accounting standards. Defense officials and outside experts have said it may be years before the Defense Department is able to fix its accounting gaps and errors and pass an audit.

Getting Real About Gender Diversity

Harvard Business Review

How do you get leaders engaged, convinced, and on board with gender diversity? That process involves turning gender balance into a business issue run by leaders. The first step is to forget diversity “champions” and make it about getting all leaders to reframe the issue for all men and managers. Also, make it a business issue, not simply a taks, by having the CEO and their team consistently and convincingly drive gender balance. Finally, make balance a management skill, and measure it.

Biggest IPO Ever With The Worst Timing Ever

Vox

On November 3, Saudi Arabia’s state oil company -- Aramco -- officially announced its plan to go public for the first time in the company’s 86-year history. And on November 17, the oil giant announced the company could be valued at $1.7 trillion. The company’s IPO is going to set major records. ut some say the timing for the Aramco IPO couldn’t be worse.

Profits Matter Again for Start Ups

Dealbook

Tech start-ups, which have enjoyed years of easy money and fast growth, are preparing for a potential downturn by doing something that was unpopular in boom times: hoarding cash. Stockpiling cash is at odds with the model of most venture capital-backed start-ups, which typically raise piles of money to spend on growing faster. Many investors are now pushing their companies to turn a profit.