FEI Weekly

October 15, 2018

Sears files for bankruptcy protection, how CECL and IFRS 9 differ, and 3 tips for receiving feedback.

Sears Files for Bankruptcy Protection

Chicago Tribune

Shortly after the bankruptcy filing was made early Monday, the company said it has arranged $300 million in debtor-in-possession financing, which will allow it to continue operating the business and paying employees while it tries to restructure around a smaller group of stores. Sears also said it is negotiating an additional $300 million in financing from hedge fund ESL Investments, the company’s largest shareholder and run by Chairman Edward Lampert.

4 Blockchain Adoption Challenges

Forbes

57% of executives polled said that implementing distributed ledger technology (DLT) at the enterprise level has been harder than expected, according to a recent report. Challenges included: scalability issues, the question of hardware security, the need for transaction confidentiality, and how to handle the payments leg of transactions.

Scandal-Hit Patisserie Spent Undisclosed £10m Overdraft

Financial Times

Patisserie Valerie, the British café chain that has found a potential fraud on its accounts, had used up £9.7m on two separate bank credit lines without the board’s knowledge. Last week Chris Marsh, finance director, was suspended from his post and arrested by police before being released on bail without charge.

How Do CECL and IFRS 9 Differ?

Accounting Today

One of the primary differences is the projection of losses for financial instruments. CECL requires that all instruments are projected over the life of the loan. IFRS 9, however, varies its projection requirement based on whether an asset is classified as stage 1, 2 or 3.

3 Tips for Receiving Feedback

Entrepreneur

Soliciting constructive feedback remains one of the biggest indicators of future success. But simply asking for feedback is never enough -- and it can be completely useless if you are not prepared to receive it. Be vulnerable, stay unemotional, and seek out the truth.