Letter From the Editor

• Date: 01 November 2014
• Published date: 01 November 2014
• DOI: http://doi.org/10.1002/jcaf.21996

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© 2014 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com).

DOI 10.1002/jcaf.21996

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Dear JCAF Reader,

Welcome to JCAF ’s special

cash and treasury management

issue.

We are still in an extended

period of economic turbu-

lence, according to author

and veteran business advisor

Jim Edwards. And there is no

new evidence that things are

changing for the better. The

U.S. gross domestic product

fell by 2.9% during the first

quarter of 2014, and that is

not a good signal for business

cash inflows. What’s more,

it possibly forecasts a gap in

cash receipts from custom-

ers in the near term. So what

strategy should treasurers

adopt to handle that? Be sure

to read Jim Edwards’s lead

article, “Managing the Cash

Flow Gap.”

Of course, proper cash

management is one of a trea-

surer’s key responsibilities.

Treasurers also know that regu-

lators are always watching for

evidence of bribery and that

regulators’ enforcement actions

can bring high costs and threats

to reputation and goodwill.

But focusing on bribery risk

is not the same as reducing it,

warns risk expert David Sha-

piro. Conditions promoting

that risk are now as virulent

as ever before. So exactly what

is the current situation, and

what should treasurers do?

Don’t miss David Shapiro’s

article, “Treasurer’s Bribery

Risk Update.”

Another sign of the times

is that increasingly companies

and customers are beginning

to hear, “We accept all major

credit cards and Bitcoins.” Vir-

tual or digital currency is a new

financial “black box” product

that has seeped into the retail

market and is slowly becom-

ing the currency of choice for

nation states like Iceland. But

as the cash or treasury manager

of your organization, are you

adequately prepared to take on

Bitcoin currency? Find out in

the article by Antoinette Smith

and Miriam F. Weismann,

“Are You Ready for Digital

Currency?”

And don’t miss the other

vital articles in this issue:

• “New Strategies for

‘Trapped’ Excess Cash”

• “Stockpiling Cash: How

Much Is Enough?”

• “Managing Bankruptcy and

Default Risk”

• “What the New Leverage

Ratio Means to Banks and

Their Customers”

• “Tax Refunds on Overstated

Earnings: A Valuation

Puzzle”

• “PCAOB Proposes Signifi-

cant Changes to Auditor’s

Reporting Model”

• “VLookups for Manage-

ment Accountants Using

Two Criteria”

Of course, as usual we also

bring you the latest book reviews

and news of developments at the

FASB, the IRS, and the SEC.

Sincerely,

Edward J. Stone

Editor

JCAF

Letter From the Editor