Essay About Quarterly Earnings Release And Financial Information

Boeing Overview
ACCT 90033 Integrated Accounting Studies Seminar 4: Boeing Case Preparation Requirements Which considerations influence management’s disclosure decisions (e.g., what, when, how much information to disclose in a quarterly earnings release)? What: Earnings release generally contains financial information regarding the recently completed fiscal quarter, mostly presented in tables (including a balance sheet, income statement, and cash flow statement) An earnings release includes quantitative and qualitative disclosures.When: is issued 20-35 days after the fiscal-quarter end. Such earnings releases are often scheduled in advance.What do investors want: proper perspective’’ and that managers avoid ‘‘overly optimistic forecasts, exaggerated claims, and unwarranted promisesWhat’s the role of the business press as information intermediary?  :forward looking meaningful  cautionary statement. reasonably balanced perspective of operating performanceAnalyze Boeing’s consolidated statements of operations (p. 10 of the news release), financial position (p. 11), cash flows (p. 12), business segments (p. 13), and operating/financial data (p. 14). Then, make up your own news release headline (max. 10 words) and a five-bullet summary (max. 20 words per bullet point). Compare it to the headline and summary provided by Boeing’s management.  Boeing’s Second-Quarter Financial Results and Segment PerformancesBoeing and its subsidiaries are facing slightly increase in revenue and decrease in expense, share payoff increased.Cash flow is decreasing significantlyEarnings from commercial airplanes brought the increase in total, R&D has decreased the expense.Reduction in IDS and increase in commercial airplane deliveries Backlog recorded at $346.1 billion2008 and 2009 financial guidance reaffirmedBased on your own reading, what’s your assessment of management’ use of optimistic and pessimistic tone in Boeing’s earnings press release? What about the headline and summary?  it seems that the revenue decreased but expense increased. It demonstrated the results were affected by the previously disclosed charge for the airborne early warning & control program and lower probability due to mix and timing in commercial airplanes. And optimistic part is the share increased and core business performed well and also lower unallocated costs.