1. Analysts
@
as represented by
Christian Dreyer, CFA
2. Group profile
currently 14 members, 3 meetings p.a.
provide input into concepts &
proposals
assist in contacting users in order to
facilitate outreach
offer advice on practical implications
of intended proposals
3. Members‘ backgrounds
Countries Industries
Canada Analyst Societies
France Consultants
Japan (Investment)
Netherlands Banking
Spain Rating Agencies
Switzerland Venture Capital
UK
US
6. There is no such thing ...
divergent preferences
due to different -
objects of analysis
analytical models
conflicts / biases
single common
purpose: value
pragmatic approach
no respect for format
7. A stable platform?
Research
premium
efficiency of
cap. allocation
Profitability
Cost of
Accessibility
coverage
13. Required information
Resources
Obligations
Ability to generate
inflows of resources
Ability to convert
resources into cash
Short- & long-term
Risk
14. Book vs Market
CPA’s CFA’s
domain domain
Cut-
off
date
expected future expected future
development of development of
known business future business
15. Resources
Obligations
Ability to generate
inflows of resources
Ability to convert
resources into cash
Short- & long-term
Risk
16. Expectations rule!
Resources
Obligations
Ability to generate
inflows of resources
Ability to convert
resources into cash
Short- & long-term
Risk
17. Expectations rule!
Resources
Obligations
Ability to generate
inflows of resources
Ability to convert
resources into cash
Short- & long-term
Risk
18. Expectations rule!
Resources
Obligations
Ability to generate
inflows of resources
Ability to convert
resources into cash
Short- & long-term
Risk
21. Twelve
Principles
to enable financial reporting
to more faithfully represent
economic reality
22. Price discovery, ca. 1920
Valuation Expec- Valuation Expec-
concepts tations concepts tations
Bid Ask
Fundamental Fundamental
Information Information
23. Price discovery, ca. 2000
Valuation Expec- Valuation Expec-
concepts tations Bid Ask concepts tations
Fundamental
information
24. Price discovery, ca. 2015
Expectations Bid Ask Expectations
Valuation Fundamental
concepts information
25. Dizzy, yet?
no interest in complexity, if -
economic reality is represented
valuation assumptions are disclosed
reverse feedback loop from users via
standard setters to preparers