Not a hiccup or a typo. GAAP as in the Generally Accepted Accounting Principles.
These are the accounting principles, standards, and procedures that companies… If a corporation’s stock is publicly traded, the financial statements must also adhere to rules…
Yes there are rules.
One of the problems we are all dealing with today is there are a number of companies, organizations and people who do not care about the rules….any rules.
A perfect example of this was just presented to the IPO community at large in WeWork pulling out of their well backed and publicized IPO.
These were not newbies in this business. JP Morgan Chase at the lead for example. The specifics of the WeWork failed IPO are available online if you are interested from a number of sources such as The Wall Street Journal and CNBC.com.
This is an example of blatantly not following the rules, in this case GAAP.
Some experts have just said this was sloppy accounting. The Law Firms, Accounting Firms, Consultants and Banks were going to ALL overlook the sloppiness – is this what we are all being asked to believe?
This would have nothing to do with the potential to make mega-millions on another IPO would it? Rules – what rules?
What this boils down to is a lowering of what is considered to be average. Overall my fear is our entire nation has determined that the old average set the bar too high. It was too much to expect.
Do you know what the numbers for high school dropouts in the USA – young people who never graduate from high school?
Every year, over 1.2 million students drop out of high school in the United States alone. That’s a student every 26 seconds – or 7,000 a day. About 25% of high school freshmen fail to graduate from high school on time.
There is a push all over the country to raise the minimum wage – which I do respect – however, the jobs at fast food restaurants were supposed to be for kids in high school or the early years of college in order to make a few bucks. Now these positions are largely taken by people as there full time jobs!
Here is a fact which cannot be disputed – when a train has a good portion of it’s wheels come off of the tracks – something bad is going to happen.
Somewhere, somehow, the wheels on the train of opportunity and education and learning and respecting the rules have been coming off the tracks for awhile – and when this happens it means something bad is going to happen. It has been happening and is continuing to happen.
Come back in each of the next few weeks for my thoughts on a few proposals to get us back on the tracks.
Mitch Tublin is the CEO and Founder of Wenkroy International LLC a boutique consulting company with a main focus on Strategic Business Consulting, Training and Business Coaching. Our passion is to take people to the next level in their life and in their business. Are you interested in having Mitch speak at your company or event – click here.