About Cristian Carbonilla

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So far Cristian Carbonilla has created 14 blog entries.

Clay Tokens – UAFRS vs AR Monthly Highlights | June 30, 2022

It is a great compliment to say something ages like fine wine. It means that something has gotten better over the years. Over time, fine wine develops a more nuanced and complex flavor that is often thought of as higher quality. Similarly, a person who has “aged like fine wine” has gotten better over the [...]

Clay Tokens – UAFRS vs AR Monthly Highlights | April 30, 2022

Three months ago, in Clay Tokens, we covered the concept of excess cash… Specifically, we discussed how not all cash is created equal. As Benjamin Graham identified in The Interpretation of Financial Statements in 1937: “there is a tendency to hold more cash than the business needs.”

Clay Tokens – UAFRS vs AR Monthly Highlights | February 28, 2022

The primary focus of investors can be summarized by one word: returns. Namely, investors would love to know how much of a return they will make on the capital they invested in a given investment. Of course, this is all but impossible in practice. Instead, investors often must settle for looking back at the returns [...]

Clay Tokens – UAFRS vs AR Monthly Highlights | December 21, 2021

In our most recent issue, we highlighted how M&A accounting violates the matching principle and misrepresents economic reality by consistently underreporting the profitability of an acquired company. This causes multiperiod distortionsin the acquiring firm’s income statement.

Clay Tokens – UAFRS vs AR Monthly Highlights | June 30, 2021

Last month, we highlighted Warren Buffett and his distaste for GAAP and IFRS accounting standards. This month, we turn to another all-time great value investor the co-founder of legendary hedge fund Baupost Group, Seth Klarman—for his take on financial reporting deficiencies in general and the focus of this month’s report… inflation or more accurately, currency [...]