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Many companies regularly disclose non-GAAP performance measures to communicate firm-specific information that does not fit within the mold of GAAP reporting. However, these non-GAAP measures may have low information content or even be misleading to investors. Thus, the question arises of whether auditors should play a larger role in the reporting of non-GAAP measures, which currently are not audited. We run an experiment to provide ex ante evidence on the effect of auditing non-GAAP measures. Specifically, we present investor-participants with a non-GAAP measure that should be used when making investment judgments (more informative) or should not be used when making investment judgments (less informative) and is either audited or is not audited. As predicted, we find that, when participants view a non-GAAP measure that is more informative, they appropriately use the non-GAAP measure in their investment-related judgments, regardless of whether the measure is audited. However, also as predicted, we find that, while participants appropriately do not use a less informative non-GAAP measure when it is not audited, participants inappropriately do use the less informative non-GAAP measure in their investment-related judgments when it is audited. Mediation results provide evidence consistent with audits affecting investors’ reliance on non-GAAP measures. Specifically, our results are consistent with audits of non-GAAP measures signaling more than is intended, evidenced by investors perceiving an audited non-GAAP measure as being useful in their investment decisions when the measure is less informative to them. Our findings suggest that regulators should exercise caution when it comes to prescribing assurance over non-GAAP measures.

BackgroundPatients presenting to the Oral and Maxillofacial Surgery (OMFS) department with odontogenic or cervico‐facial infections are at risk of sepsis. The Sepsis Six bundle significantly reduces mortality if completed within 1 h. This study describes the use of a novel pro forma for OMFS which aims to improve compliance with Sepsis Six.MethodsA pilot retrospective audit was completed to determine compliance with the Sepsis Six bundle. Data were collected from consecutive patient case notes referred to a single UK OMFS department. A custom pro forma sheet was designed. Two further audit cycles were carried out over a 4‐year period and dental core trainees focus group gave feedback on the new pro forma.ResultsA pilot retrospective audit showed no compliance with the original Sepsis Six bundle. Completion of the new pro forma for patients presenting with cervico‐facial and odontogenic infection increased to 59% in the second cycle. There was a 66% increase in the delivery of intravenous antibiotics within the first hour and lactate measurement rose to 50% by the second cycle. Importantly, initial observation of vital signs improved throughout the audit, reaching 97%. The focus group generally supported improvements in compliance, effective communication, and good record‐keeping using the pro forma.ConclusionThe introduction of a custom pro forma for OMFS appears to improve completion of the Sepsis Six bundle which could reduce morbidity and mortality. Continual team education is required, and further audit would be useful to determine if this intervention alone is the reason for increased compliance.

This study examines the incremental information in loss firms’ non-GAAP earnings disclosures relative to GAAP earnings. Using a large sample obtained through textual analysis and hand-collection, we posit and find that loss firms’ non-GAAP earnings exclusions offset the low informativeness of GAAP losses for forecasting and valuation. Loss firms’ non-GAAP earnings are highly predictive of future performance and are valued by investors, while the expenses excluded from GAAP earnings are not. Additional tests suggest that loss firms disclosing non-GAAP profits have significantly better future performance than GAAP-only loss firms and are not overvalued by investors. Comparing non-GAAP earnings of profitable firms to those of loss firms, we find that loss firms’ non-GAAP metrics are significantly more predictive and less strategic. We conclude that non-GAAP earnings disclosures are particularly informative about loss firms and help investors disaggregate losses into components that have differential implications for forecasting and valuation.

The global proliferation of reporting non-International Financial Reporting Standards (IFRS) (pro forma)earnings has been subject to academic debate and regulatory reform. This study examines whether non-IFRS earnings contain statistically significant information on future cash flow predictability that could be useful for investors. The study uses data from large Australian listed companies over a six-year period (2006–11) covering three distinctive periods around the global financial crisis (GFC): pre-GFC, GFC and post-GFC. Results based on fixed effects panel estimation methods suggest non-IFRS earnings do exert a significantly positive impact on future cash flow predictability but only during pre-crisis and crisis periods.

type="main"> There has been a trend for large professional service firms (PSFs) to move away from the traditional partnership structure to other ownership forms such as publicly owned companies. Research on the relative performance of these ownership forms has been constrained by the lack of availability of financial information for partnerships, and proxy revenue-based measures used have resulted in conflicting findings. This paper seeks to guide future research by exploring accounting reporting differences between partnerships and publicly owned PSF companies in order to identify adjustments required for comparison and implications for performance measures used. This paper reviews the literature and examines the annual reports of two Australian publicly owned accounting companies and one large accounting partnership; pre-initial public offering pro forma reporting in the prospectus of one of the companies identifies significant profitability reporting differences across ownership forms. The findings also suggest that the lower revenue per professional and per person for publicly owned PSFs found in prior studies may be offset by significantly lower salary costs. The paper concludes that significant value can be achieved by further analysis of profitability across ownership forms and suggests data requirements to inform the development of further case studies and large-scale surveys of financial performance.

In late 2007, the five-member National Labor Relations Board (NLRB or the Board) was faced with an impending crisis. This independent board, which is charged with investigating unfair labor practices and has oversight over important labor union proceedings, was running out of time. The terms of three of its five-member board were set to expire in December, which would leave the Board with less than a majority of its members and thus legally unable to make decisions because it lacked a quorum. Just before losing the quorum, however, the Board agreed to delegate its powers to a three-member commission, in which case the remaining two members could satisfy the quorum requirements (a simple majority) necessary to perform the duties of the Board. While seemingly a stopgap measure, the NLRB continued to operate without a true quorum until well into 2010. Ultimately, the Supreme Court decided (in New Process Steel, LP v. NLRB [2010]) that the decisions of the two-member Board, which numbered in the hundreds and spanned more than two years, were invalid. Legally, the NLRB was unable to function. Between the 110th and 112th Congresses, Presidents George W. Bush and Barack Obama both struggled to secure Senate confirmation of their nominees with just 2 of 21 formal nominations ending with success. To maintain a quorum after the Supreme Court ruling, President Obama resorted to a previously common unilateral power: a series of recess appointments. The crisis, however, continued. In 2012, the NLRB was again facing an imminent shutdown. In order to forestall the president from issuing further recess appointments, a procedural trick using pro forma sessions--pioneered by Democrats to thwart President Bush in 2007--was used by Republicans in Congress to prevent a recess of sufficient length to issue recess appointments. (1) In defiance of this strategy, President Obama made four recess appointments, three of which were to NLRB. While President Obama defended his actions as legal (Office of the Legal Counsel 2012), the Supreme Court eventually ruled in Noel Canning v. NLRB (2014) that the nominations were invalid. Legally and practically, the president was barred from making recess appointments by Congress. The growing practice of using pro forma sessions to preempt presidential recess appointments is, arguably, not the most important change to executive nominations politics to occur within the Obama administration. After decades of ever-increasing use of dilatory tactics, the U.S. Senate reformed its procedures so as to reduce the filibuster's bite on the majority of executive nominations. In short, the reform now allows for simple majorities to confirm controversial nominees. When presidents control a majority of the Senate, they can now expect to successfully confirm key nominations such as NLRB officials. The combined influence of pro forma sessions and the Senate rules change will likely be far greater than the mere sum of the parts. When government is divided, pro forma sessions can easily block recess appointments. When government is unified, presidents will have no need of recess appointments for key nominations. Together, these trends may forever alter interbranch politics by removing recess appointments from presidents' standard tool chest. The goal of this article is to investigate the recent changes in the executive nominations process and to consider their influence on the future use of presidential recess appointments. In the following section, I will provide an overview of presidential recess appointments as well as provide some empirical description of this power's use in the past five presidential administrations. Next, I will discuss the political contexts and key elements of two recent developments within the executive nominations process: the rise of pro forma congressional sessions designed to thwart presidential ambitions and the recent Senate rules reform lowering cloture requirements on most nominations to a simple majority. …

Background: The 2001 National Health and Medical Research Council/Australasian Society of Blood Transfusion Clinical Practice Guidelines for cryoprecipitate are being updated, and cryoprecipitate has been incorporated into new Patient Blood Management modules. Aims: This clinical audit sought to clarify current cryoprecipitate use in Victoria, Tasmania and the Australian Capital Territory; assess adherence to guidelines; and gain insights into deviations from recommended practice. This information can be utilised in updating guidelines to make them more relevant, to identify areas for clinician education and to form a baseline of practice prior to release of the 2011 guidelines. Methods: Participating institutions were invited to audit up to 30 consecutive episodes of cryoprecipitate transfusion over an 11-month period in 2008. The audits were conducted using a standardised pro forma and involved review of patient records. These were collated electronically using algorithms to determine alignment versus nonalignment with guidelines. Results: Cryoprecipitate is used in a variety of situations with surgery accounting for the highest volume. Twenty-six per cent (26%) of transfusions were aligned with 2001 guidelines rising to 61% with a modified fibrinogen trigger. Fibrinogen levels did not appear to dictate all clinical decisions regarding cryoprecipitate use perhaps owing to the acuity of many cases. Additional bleeding risk together with low fibrinogen levels (e.g. thrombocytopenic patients) may contribute to empiric cryoprecipitate use. Conclusions: These results highlight discrepancies between guidelines and practice, providing rationale for the update of the guidelines that is currently underway. Cryoprecipitate has attendant risks, and it is appropriate that transfusion be restricted to situations with good evidence or sound principles to underpin use.

Key content This comprehensive literature review of the medico-legal challenges of surrogacy in modern obstetrics, highlights recent changes in UK law, the limited guidelines and legislation available, and the legal requirements for parenthood and parental rights. UK legislation involving surrogacy and the medico-legal definition of parenthood is reviewed. There is new UK surrogacy legislation affecting the parental order qualification, indicating that obstetricians will see more surrogate cases in the immediate future. Conflicts can arise when surrogacy agreements are broken, since they are lawful but legally unenforceable in the UK. There are ethical and legal dilemmas for healthcare professionals in managing surrogate pregnancies in the absence of professional guidance, and as a result the authors of this review introduced a practical guide and pro forma. Learning objectives To explain current legislation surrounding surrogacy in the UK. To discuss ethical and moral concerns regarding the practice of surrogacy. To apply medico-legal principles in the management of surrogate pregnancy. Ethical issues The exploitation versus empowerment and autonomy of women participating in surrogacy. The commodification of reproduction through surrogacy. The validity of consent with the possible presence of emotional or financial coercion, and the unpredictability of outcomes in surrogacy arrangements.

We explore whether investors’ perceptions of pro forma earnings numbers have changed following the regulation of pro forma reporting imposed by the Sarbanes-Oxley Act of 2002 (SOX). First, we find that investors appear to pay more attention to pro forma earnings disclosures in the post-SOX period, consistent with the notion that they perceive that regulation generally renders these disclosures more credible. Second, the results indicate that investors discount aggressive pro forma earnings reports in both periods. However, they appear to discount at least some potentially misleading pro forma earnings disclosures more in the post-SOX period. Finally, our results imply that the regulation of pro forma reporting has increased the average quality of pro forma earnings disclosures by filtering out those that are most likely to be misleading. These results are consistent with the conclusions that (1) the quality of pro forma reporting has improved following SOX, and (2) investors’ perceptions of pro forma earnings metrics have changed in the post-SOX regulatory environment.

While some prior studies suggest that the timing of earnings announcements may reflect management's attempt to better inform investors, other studies suggest that managers opportunistically time their earnings releases in an effort to alter investors’ perceptions of firm performance. However, there is limited empirical evidence on the relation between earnings announcement timing and the manipulation of reported earnings. We extend this research by examining the timing of quarterly earnings announcements that contain an adjusted (‘pro forma’) earnings measure and whether managers’ behavior is more consistent with opportunistic or information-related motives. We find that, on average, managers accelerate the timing of earnings announcements in quarters in which they disclose an adjusted earnings metric within the earnings press release relative to quarters in which they do not. In addition, we find that the acceleration of the earnings announcement increases with the level of managers’ exclusions of recurring expenses and their use of less transparent reconciliation formats. Consistent with managerial opportunism, we find that the recurring item exclusions used to calculate pro forma earnings in accelerated earnings announcements are of relatively lower quality and are more predictive of lower future earnings. We also find that investors fail to fully unravel the low-quality nature of the recurring item exclusions used to calculate pro forma earnings in these accelerated announcements and that this failure is attenuated by managers’ use of less transparent reconciliation formats. Taken together, our results suggest that the acceleration of pro forma earnings news is at least partially attributable to managerial opportunism.

We examine the influence of investor sentiment on managers’ discretionary disclosure of “pro forma” (adjusted) earnings metrics in earnings press releases. We find that managers’ propensity to disclose an adjusted earnings metric (especially one that exceeds the GAAP earnings number) increases with the level of investor sentiment. Furthermore, our analyses suggest that, as investor sentiment increases, managers: (1) exclude higher levels of both recurring and nonrecurring expenses in calculating the pro forma earnings number and (2) emphasize the pro forma figure by placing it more prominently within the earnings press release. Additional analyses indicate that the association between investor sentiment and managers’ pro forma disclosure decisions at least partly reflects opportunistic motives. Finally, we find that managers’ own sentiment-driven expectations also play a role in their pro forma disclosure decisions.

Please cite this paper as: Tang A-W, Sabir N, Comber K, Liebling R, Pollard J, Roberts D. A pro forma and review process for the assessment of standards of care in stillbirths. BJOG 2011;118:1661–1664. Stillbirth rates do not address deficiencies in care. We collected information on stillbirths from 2004 to 2009 using a standardised pro forma. A local panel used the pro forma to grade the level of care received by the Confidential Enquiry into Stillbirths and Deaths in Infancy (CESDI) categorisation. Comparison using kappa scores showed agreement between local and external multidisciplinary panels of similar referral patterns (n = 47, κ = 0.7), and that the categorisation was unaffected by the individual who fills out the pro forma (n = 17, κ = 0.5). There was less agreement between the local panel and adverse event review (n = 100, κ = 0.45). This report represents a validation of the pro forma and the review process for standard use in all units.

This paper examines the joint effects of corporate governance and regulation by the Securities and Exchange Commission on the disclosure of manager-adjusted non-GAAP (or pro forma) earnings numbers in the United States. We provide evidence that prior to Regulation G investors were misled by disclosures of non-GAAP earnings, but only for disclosures made by firms with weaker corporate governance. After the SEC intervention there is no evidence that investors were still being misled. Furthermore, the effect of the intervention applied to both adjustments that are ex ante recurring as well as to adjustments that just meet or beat analysts’ forecasts.

Aim: To determine the rate, causes and risk factors of non-attendance to the paediatric clinic in a tertiary hospital in Malaysia and to determine the efficacy of one telephone call to confirm a new appointment. Methods: For all non-attending patients, during a 2-month period, a pro forma was filled up based on patients' records. During a phone call, additional questions were asked, and a new appointment was offered. Results: Of 1563 patients who had an appointment, 497 (31.8%) were non-attendees. Weather conditions, the sub-specialty and timing (morning or afternoon) had a significant effect on non-attendance. Forgetfulness was the main cause. Only 160 patients could be successfully contacted. Among the contactable patients, 55 already had an appointment, and 10 had reasons not to get a new appointment. Of the 95 remaining patients, 73 (76.8%) attended the new appointment. Conclusion: The non-attendance rate was high. One telephone call had a reasonable efficacy for the contactable patients, but because a high number of patients were not contactable, overall effectiveness was poor.

Pharmacogenetic tests are proposed as a means of targeting therapy to patients such that ineffective medicine prescription and adverse events are reduced and overall benefit in terms of improved health outcomes is maximized. However, the true impact of introducing pharmacogenetic tests into clinical practice remains to be confirmed. This commentary presents some of the key requirements in developing a pharmacogenetic clinical practice model in a hospital setting. The analysis considers the need to select carefully which pharmacogenetic tests are best offered, while balancing the cost to the institution given the potential benefits to the patient population base. Drawing on our experience in Taiwan, we recommend that developing a hospital task force for pharmacogenetic testing is a recommended approach to: (1) set quality standards on how best to conduct the test, (2) provide a pro forma for interpreting results, (3) prescribe treatment appropriately according to results, and (4) design an educational program for all relevant health care team members. To further support the implementation of pharmacogenetic testing in the hospital setting, it is necessary to promote audit of clinical practice by building hospital-based registries to facilitate the collection of health care resource use and outcome data that records the clinical uptake of testing. We suggest that well-conducted economic evaluations, relevant to local practice, are essential pieces of information to guide institutional decision making on how best to develop the appropriate use of pharmacogenetic tests in clinical practice. Drug Dev Res 71: 502–506, 2010. © 2010 Wiley-Liss, Inc.

The practice of reporting manager-adjusted ‘pro forma’ earnings numbers in quarterly earnings press releases has attracted considerable attention in recent years in the United States. Prior research suggests that while some managers report these adjusted numbers to better reflect core earnings, others may use these earnings adjustments to meet strategic earnings targets on a pro forma basis when they fall short based on GAAP reporting standards. Assuming the latter motivation could potentially mislead investors, the difficulty lies in distinguishing the ‘good guys’ from the ‘bad guys.’ Using hand-collected pro forma earnings data, we investigate the extent to which different types of earnings adjustments affect the spread between pro forma earnings and GAAP earnings from continuing operations. Moreover, we investigate which types of adjustments managers use to meet strategic earnings targets. In addition to the exclusion of one-time items like restructuring charges, the results indicate that managers often exclude recurring expenses such as depreciation, research and development, and stock-based compensation to meet these strategic targets. The exclusion of recurring items is especially indicative of aggressive pro forma reporting. Finally, we find that firms that report adjusted earnings numbers only sporadically are more likely than firms that adjust earnings figures on a regular basis to use pro forma reporting to achieve strategic earnings targets by excluding recurring items.

This article explores whether authors can dedicate their copyright to the public domain. Such dedications are becoming increasingly relevant as authors now see the expansion of the public domain as value in itself. This is facilitated by organisations providing pro forma documents for dedicating works to the public domain. However, there has been no real consideration of what, if any, legal effect a dedication to the public might have. This article suggests that such dedications are no more than copyright licences which, in English and US law at least, can be revoked at will. This means that users of such works must rely on estoppel alone to enforce any dedication to the public domain.

Transition Therapeutics Inc. (Transition) and Waratah Pharmaceuticals Inc. (Waratah) are two publicly traded biopharmaceutical Canadian companies. In October 2001, Transition and Waratah announced that they had agreed to combine their respective businesses, assets, and operations. The business combination will be effected through an exchange of equity interests. The case unfolds before special shareholders' meetings for approval of the arrangement. Management is preparing the joint management information circular, which should include pro forma consolidated financial statements. However, many issues should be addressed to account for the business combination, and decisions on these issues might affect the accounting treatment as well as pro forma financial information. Note: Teaching Notes for instructional cases are not published in the journal but are made available to full CAAA member subscribers in a password-protected area of the CAAA website. Go to http:www.caaa.caAccountingperspectivesCAPCasesTeachingNotes to log in and access the notes.

Rationale There was local concern over possible delays in the diagnosis and referral of patients with suspected colorectal cancer and interest in understanding more about patients’ experiences of diagnosis. Aims and objectives To use clinical audit, qualitative data from patients and feedback from general practitioners (GPs) to identify possible delays in referral, and to decrease these by implementing referral guidelines. Methods Audit of endoscopy referrals assessed how often these recorded rectal examination and whether patients were seen within 2 weeks. Qualitative interviews with 19 patients explored their experience of referral and diagnosis. Review of 33 case records assessed other possible delays. Results Most patients referred for endoscopy were seen within 2 weeks (67%, 119/177), but only 47% (71/151) of available referral letters mentioned rectal examination. Patients perceived most delay in secondary care and case records suggested that this occurred after non-urgent referral. Patients also identified some problems with communication, information and support about the diagnosis. We used the results to stimulate local acceptance of national referral guidelines and wider discussion about care. A consultation exercise with GPs informed the development of a faxable urgent referral pro forma and supporting educational meetings. We designed a database to monitor changes in waiting times and made plans to improve communication and support after diagnosis. Discussion Feeding back qualitative data from patients together with audit results seemed a powerful lever to stimulate action about hospital delays. Average waiting times dropped quickly and remained low due to the continuing national focus upon them. Seeking GP views may have promoted the use of referral pro formas, but monitoring waiting times distracted from a more thorough evaluation of their use. Qualitative data from patients raised awareness of their experience, but was time-consuming to collect and we had limited success in using it for specific initiatives around communication and support.

This study addresses three research questions relating to total exclusions, special items, and other exclusions. Are each of these pro forma exclusion components forecasting irrelevant? Are each of the exclusion components value irrelevant? Are the valuation multiples on the exclusion components justified by their ability to forecast future profitability as predicted by the Ohlson (1999) model? Findings are generally consistent with the market-inefficiency results presented in Doyle et al. (2003). Total exclusions are valued negatively by the market despite the prediction that total exclusions will be valued positively. Valuation results also suggest that stocks with positive other exclusions are overpriced.

This paper uses stock market data to investigate the popular claim that investors are misled by the “pro forma” earnings numbers conspicuously featured in the press releases of some U.S. firms. We first document the frequency and magnitude of pro forma earnings in press releases issued during June through August 2000, and describe the 433 firms that engaged in this financial disclosure strategy. Our test period predates public expressions of concern by trade associations and regulators that pro forma earnings may mislead investors and the subsequent issuance of guidelines and rules on the disclosure of pro forma earnings numbers. We use two complementary approaches to determine whether the share prices that investors assign to pro forma firms are systematically higher than the prices assigned to other firms. Our market-multiples tests for differences in price levels find some evidence suggesting that pro forma firms may be priced higher than firms that do not use the disclosure strategy. This apparent overpricing is not, however, related to the pro forma earnings numbers themselves. Our narrow-window stock returns tests reveal no evidence of a stock return premium for pro forma firms at the quarterly earnings announcement date. Collectively, the results cast doubt on the notion that investors are, on average, misled by pro forma earnings disclosures despite the widespread concern expressed in the financial press and by regulators.

One of the most controversial accounting issues pertains to stock compensation. In Canada, the Canadian Institute of Chartered Accountants (CICA) approved section 3870, Stock-based Compensation and Other Stock-Based Payments, on November 13, 2001, to take effect in January 2002. Section 3870 forces companies to “take a look at the real economic cost of most of the stock-based compensation mechanisms” (AcSB Bulletin, October 2001, 1). The adoption of section 3870 was aimed at harmonizing Canadian accounting practice with U.S. standards. The new standard, which was initially based on two American accounting standards - APB Opinion No. 25 and SFAS No. 123 - gave companies the choice of using either the fair value method or the pro forma disclosure of net income and adjusted earnings per share to account for stock-based compensation. The Accounting Standards Board (AcSB) nevertheless recommended that Canadian companies use the fair value method, which consists in estimating and recognizing the value of the stock options at the grant date.

This article looks at how U.S. managers supplement GAAP earnings with pro forma reporting. Pro forma measures, which are not audited, are typically determined through an adjustment to GAAP-based earnings. For example, a manager may choose to present an alternative to GAAP earnings that excludes period write-offs and one-time restructuring charges in order to present a more value-relevant picture of the company's performance. The authors find that 77% of S&P 500 companies report pro forma results, and that pro forma measures are generally given greater prominence than GAAP earnings in corporate press releases. Based on the evidence, U.S. managers are using pro forma reporting strategically to affect investor perception of corporate performance. The SEC has recently issued rules to ensure that pro forma disclosure is not misleading. The authors present some guidelines on voluntary disclosure that might help forestall further regulation and preserve the ability to pursue this potentially informative practice.

There's a widening chasm between pro forma earnings and companies' actual earnings—those based on generally accepted accounting principles. It's time to step on the brakes so we don't fall in. © 2002 Wiley Periodicals, Inc.

Managers, security analysts, investors, and the press rely increasingly on modified definitions of GAAP net income, known by such names as “operating” and “pro forma” earnings. We document this phenomenon and discuss competing explanations for the recent rise in the use of such modified earnings numbers and implications for the interpretation of related accounting research. Our results show that over the past 20 years there has been a dramatic increase in the frequency and magnitude of cases where “GAAP” and “Street” earnings differ. Further, there is a very strong bias toward the reporting of a Street earnings number that exceeds the GAAP earnings number. We also show that the market response to the Street earnings number has displaced GAAP earnings as a primary determinant of stock prices. Finally, through an analysis of earnings releases, we show that management has taken a proactive role in defining and emphasizing the Street number when communicating to analysts and investors.

This article investigates U.S. corporate lobbying of the Financial Accounting Standards Board (FASB) in the U.S. on the exposure draft to Financial Accounting Standard No. 123 (FAS 123), Accounting for Stock-Based Compensation. Essentially, firms lobbied the FASB in one of three ways: (a) against disclosure/recognition of any additional information beyond that already required in U.S. proxy statements, (b) for summary footnote disclosure of all employee stock-based compensation (SBC), or (c) for either pro forma or formal income statement recognition of all employee SBC. This study finds that the higher the level of the SBC of the top five executives, the less likely firms are to favour disclosing that information. This finding supports the hypothesis that economic self-interests motivated lobbying behaviour on FAS 123. Furthermore, the study finds that U.S. corporations lobby against disclosure of executive SBC in the annual reports even when the annual reports would disclose no additional information beyond that currently disclosed in proxy statements. This is evidence that managers perceive that the venue of disclosure (proxy versus annual report) matters. It is posited that managers lobbied against disclosure of SBC to avoid possible changes to compensation contracts which in turn could adversely affect stock prices. In sum, the results support the notion that managerial self-interest affects lobbying behaviour on the venue as well as the format of disclosure.

St. Petersburg’s architectural heritage makes it one of the most beautiful cities in Russia. However, as government subsidies continue to dwindle, the city is increasingly dependent upon private sources of financing to restore and preserve the many seriously deteriorated monuments and buildings. This article considers whether the economic and legal environment in St. Petersburg provides sufficient incentives for private investors to undertake historic rehabilitation projects. A pro forma model is used to analyze a developer’s return on investment in new residential construction on the outskirts of the city versus rehabilitation of an historic residential building. The results show that the costs associated with historic preservation are significantly greater than for new construction and for a developer to make a reasonable rate of return on historic preservation the square meter price of residential space would be affordable by only a small segment of the population. Simultaneous changes to multiple legal and economic policies are recommended to encourage additional private investment in historic preservation.

Mulvey and Richards offer the provocative observation that the time-honored anti-racism model is one that needs assistance, in that it is generating complacent pro forma attitudes. The underpinning of what they suggest in their conversational approach to race relations is decep tively simple: Get participants to move beyond the usual scripted responses and into unscripted dialogues so that they are led to recognize realities in their world of race relations. In actuality, their approach has layers of complexities that impact on what takes place. If, as Mulvey and Richards contend, there is typically an unrealized disparity between what students say they believe and what they subcon sciously practice, then utilizing a nonthreatening method for students to conceptualize and articulate unquestioned assumptions offers promise. Such a technique can generate meaningful dialogues in which individuals feel free to express themselves and through this process possibly discover the inconsistencies in their thoughts and deeds. I am reminded of a situation that I faced a few years ago in teaching a graduate class where students rejected all suggestions that their percep tions or actions might have a racial bias. Only a bold experiment a week later with a staged disruption of the class by black radicals (actually role playing academics unknown to the students) prompted the students to reconsider their previous position and recognize their latent prejudices. In that case, after about 6 minutes of role playing, the "disrupters" revealed their true identities and I then facilitated a meaningful dialogue between them and the students. Sometimes you just have to "shake the tree a lit tle" to get those lingering autumn leaves to let go of an untenable reality. Facilitated open dialogue can be one such technique.

Summary An Internet-based environmentally conscious decision support tool (EcoDS) has been developed for life-cycle management EcoDS involves an initial vertical streamlining step, where the significant life-cycle stages, stressors, and impact categories are selected and cross-correlated. Because the streamlining is performed prior to the inventory, the approach expedites data collection. Comparisons among alternative product designs or manufacturing processes are based on two metrics: financial risk (or cost) and “residual” risk. For purposes of evaluation these two indicators are individually aggregated using a user or organization-specified value system. A salient feature of EcoDS is that this output can be condensed into a single summary matrix akin to a hybrid pro forma income statement and environmental balance sheet. The clear delineation between the tradeoffs involved in each alternative facilitates decision making by upper management. A case study on painting attematives is presented to illustrate the methodology

There are many considerations in a firm's choice of where to locate a production facility. One of the least understood is the implication of foreign exchange risk. The issue is complex because, in addition to the concept of operational hedging, managers must also consider economic exposure and, in cases with foreign competitors, competitive exposure. As shown in this article, a firm's competitive exposure to exchange rate changes depends upon the location of its competitors' plants as well as its own. The currency exposures of various international production strategies are demonstrated using hypothetical scenarios. The scenarios can also be used to perform a “pro forma” financial hedging analysis of currency exposure in simple “three-outcome” cases. By implicitly accounting for the market's pricing of exchange rate risk, the financial hedging analysis provides a straightforward way for managers to evaluate various international production possibilities.

…Necessarily. In the current race to embrace IPD (or IPPD) as the panacea of the nineties, teams have been identified as the pro forma solution. The assumption is that by establishing multi-discipline teams, the objectives of IPD will be automatically achieved. However, evidence conflicts with this assumption. In reality, focusing on teams can distract management from the real goals of IPD. By understanding the objectives of IPD and the effects of teams, the relationship of the two can be understood. Then, effective implementation can occur.

Even if you continue to record stock compensation expense under APB 25, you still must measure the fair value of stock compensation awards, and determine pro forma net income and earnings per share just as if you had applied the new fair value rules. The author reveals what you need to know about the new disclosure requirement, and shows what other companies have done with FAS 123 disclosures in their annual reports.

Foreword. Preface. Acknowledgments. Part One. Introduction to the Applied Portfolio Management Class. Chapter 1. APM History. In the Beginning. How do Beginning Investors Think? Student Groups - Short-Term Investing and Portfolio Contests. Getting Close to the Information. Onions, Poker, and Ants. What about the Ants? Things to Come. Chapter 2. APM Guidelines. Professional Money Managers. Tactical Asset Allocation and Sector Benchmarking. APM Approach. Wrapping Up. Chapter 3. Conventional Wisdom. Diversification and Risk. Efficient Markets. Conclusion. Chapter 4. How Students Find An Investment Edge. Build Your Own Information Network. Neglected Firms. Surface Analysis. Wrapping Up. Chapter 5. Alpha, Sigma, Beta. APM's Risk and Reward. The Risk-Return Trade-off. Other Risk Measures. Wrapping Up. Appendix. Risk and Return Calculations. Part Two. Building an Investment Case. Chapter 6. Many Ways to be a Successful Investor. Common Traits of Successful Investors. APM's Philosophy. LSB Industries. Wrapping Up. Chapter 7. Prepping for a Case. Getting Started. Understand the Business. Ready to Write the Case. Appendix. 10-K Requirements. Chapter 8. Writing a Case. Case Format. Description. Investment Thesis. Next Steps. Chapter 9. Gazing into the Crystal Ball. Pro Forma Statements. Pro Forma Financial Statements and Free Cash Flow. Building a Pro Forma. Next Steps. Chapter 10. Valuation. Relative Valuation. Discounted Cash Flow Valuation. Investing is Dynamic. Appendix. Discounted Cash Flow Formulas. Part Three. Class Specials. Chapter 11. Investing in China. Financial Systems in China. Raising Equity in China. Company Example - China Green. Wrapping Up. Chapter 12. It's a Big World (After All). Interceramic. World Commodities. Wrapping Up. Appendix. Valero's Numbers. Chapter 13. Local Biases. American Italian Pasta (PLB). Novastar Financial (NFI). Inergy, L.P. and Inergy Holdings, L.P. Tortoise Capital Advisors (and more about Inergy). Wrapping Up. Chapter 14. Making Corporate Governance Pay. Board Issues. Corporate Activists. Oplink Campaign. Wrapping Up. Chapter 15. It's All About Who You Know. APM Students. APM Speakers. The Last Word. About the Authors. Index.

Hand cases are common presentations to Emergency Departments and often pose complex clinical challenges in assessment especially by junior doctors. The purpose of the hand assessment pro-forma is to arm the examining doctors with skills for better assessment, management and documentation of hand cases. Upon surveying 20 metropolitan emergency departments, it was found that only two had hand specific reference material, four had orthopaedic or general surgical texts, and the rest had only emergency texts immediately available to the perplexed junior doctor. The high demands of emergency departments increase the need for more efficient hand injury management and referral to equally busy on-call hand services. This standardized, universal, user-friendly hand assessment pro-forma proficiently records each component of the assessment in a two-page examination chart. This ensures timely and complete documentation as it guides the medical officer through assessment in a step wise manner. The assessment pro-forma, including the diagrams, can be faxed to the on-call hand surgeon at the time of referral. Through improved communication and reduced reliance on cumbersome oral description, greater understanding of a case discussed over the phone will allow early intervention, optimised outcome, and minimised costs. Maximum expected standards of documentation are achieved with the completion of each part of the pro-forma, which reduces possible medical and legal complications. A readily implemented and simple model with potential for aid to junior doctors is now available which increases efficiency for emergency departments, allowing thorough assessment of patients with reduced hospital costs and risks of litigation.

Building tests out of items that individually take a substantial amount of examinee time brings with it a number of problems. One major problem is that it is often too difficult and too expensive to extensively pretest such large items. Thus, the sorts of screening for flaws that are pro forma for multiple-choice items are not often done for large items. In addition, because there are so few large items on an operational test, not counting an entire item that is found to be flawed in an operational administration may be tantamount to aborting that administration. In this article, we examine the efficacy of the alternative of continuous item weighting. This alternative is illustrated on data from the 1988 administration of the College Board's Advanced Placement History Test.

This paper describes the development of a local provision for children presenting with a complex communication disorder (autism continuum). The service is organised as a partnership between parents, professionals and voluntary organisations. The paper is organised under the headings: Where we were; Where we are; Where we are going. The content to include: Definition of autism; Joint development of the service; Team structure and network; Parents' information leaflet; Data on children seen, including referrals, results and sample action plan; Pro forma of structured play session with individualised samples; Protocol and audit results; Consumer survey results; Post-assessment service provisions; Training of professionals; Future developments. Areas for discussion include: Protocol; Assessment process, and Evaluation.

Applicants for admission to St Mary's Hospital Medical School in 1986 were short-listed for interview by one of four assessors, who each made their assessments on a nine-item pro forma. One short-lister had also been studied in detail during 1981. Short-listers used the full range of possible judgements, in approximately the proportions requested. Only minor differences were found between them in the mean and range of their judgements, suggesting that similarity of standards can be maintained while using a number of separate short-listers. A confirmatory factor analysis of individual short-listers' judgements showed that all were extracting three separate factors, named 'Academic ability', 'Interests' and 'Contribution to community', although the less experienced short-listers differentiated these items less well than the more experienced. The short-lister assessed in 1981 and 1986 had retained an almost identical factor structure over the 5-year period.

This study concerns topic selection in conversational reports of a personal event, the birth of a baby. Ninety phone calls from 12 fathers and 7 mothers were analyzed in terms of the subject's prior concerns (prenatal questionnaire) and the outcome of events (postpartum questionnaire). Four analyses were conducted. The first showed that subjects were likely to mention topics of high, rather than low, prior concern, and unusual, rather than ordinary, outcome. The second showed that chronologically early topics were discussed before late topics. These findings were compatible with either a memory (i.e., “knowledge telling”) or a communication (i.e., “knowledge processing”) model of topic selection. Two additional analyses were conducted to evaluate predictions derived from each of these models. The first analysis showed that the conversations also contained a small set of pro forma topics that appeared earlier and more frequently than other topics. The second showed that these topics were more likely to be recipient-initiated. These results suggest that reporters deviated from an optimal retrieval plan to take the recipient into account. The results as a whole support a communication-based, “knowledge processing” (Bereiter & Scardomalia, 1980) model of topic selection.

An attempt was made to review the diagnostic or problem-solving skills of a group of four students as they interviewed children and their parents, who presented with common paediatric problems. The students were instructed to complete a pro forma stating the most likely diagnosis with their reasons; their answers to be given as the interview proceeded and after completion of the patient encounter. The students entertained up to six diagnoses and despite considering the correct diagnosis early in the interview, often arrived at an incorrect final diagnosis. Some improvement was noted in the students' performance when the exercise was repeated at the end of their 10 week paediatric term. The students tended to follow a disengaged enquiry, in part related to an inadequate knowledge base. By way of comparison, four consultants were put through the same exercise and arrived at the correct diagnosis after considering only one or two diagnoses. The students were also asked how they considered they had acquired those skills. As part of their answers, all included "formal learning". The majority also suggested the observation of a suitable clinical model. When the consultants were asked the same questions all included "independent learning". All subjects came from traditional medical schools. The relevance of these findings is discussed in terms of patient management and the teaching of problem-solving skills to undergraduate and postgraduate students.