Your mission:

Untangle the accounting web created by a bunch of theory people in Connecticut (and academics, damn them :-)), who don’t really understand the consequences of their actions.

Please review the following materials: (????????)????????

This is a case on Alphabet (Google’s parent company). (????????)????????

This is Warren Buffett’s letter to shareholders. Please also review his financial statements.

Here’s the assignment, and this one requires a combination of analysis and creativity:

You’re asked to advise people on how to review financial statements of Berkshire and Alphabet given the volatility of the gains/losses, and you’re asked to write the outline of a letter to the FASB suggesting changes to the accounting standards to better reflect reality and limit volatility in reported earnings.

Output: a sensitivity table showing the effect of changes at various levels to Alphabet and Berkshire earnings from changes in the value of their holdings as of the latest balance sheet date.

A 2 page outline of how you would change the accounting standard.