Can you explain how the dollar’s strength affects earnings? What type of disclosures will firms be required to make to discuss the exchange rate’s effect on earnings? How do you think the exchange rate will affect U.S. firms’ stock prices?
Is there concern that pensioners at Sears will not receive pension payments in amounts they had anticipated? What are the various combinations of options that Sears has to fund the underfunded portion of the pension obligation?
Why should governments adopt accrual accounting, instead of continuing to use cash accounting? Should governments be forced to adopt accrual accounting? How could that be done?
In what way is this a “bad thing”, namely that EPS increases are “denominator driven”? Would you propose an alternative to EPS? If so, for what purpose? What would the alternative measure be?
Should standard setters incorporate direct input by “front line” practitioners in setting new standards? Should the new standard on revenue recognition be further delayed? Should it be changed? If so, what recommendations would you make? Explain the quote, “unless it is allowed, it is forbidden,” and, “unless it is forbidden, it is allowed.”
Are accounting standards and the required financial disclosures meaningful to stock pickers who use computerized (quantitative) investing? Is it necessary for quants to understand accounting? If you are interested in a career in equity trading, should you study accounting, or math?
What are the benefits of zero based budgeting? Costs? When might the costs outweigh the benefits? Should governments use zero-based? Why or why not? If they should, why don’t they?
How would you write a new pension standard that accommodates a hybrid, “risk sharing” pension plan, one that incorporates elements of both DB and DC plans?
If you want to raise capital as an entrepreneur, this research suggests that you also need to watch your body language. Thoughts?
In your opinion, should standards covering concerns related to environment, society, and governance (ESG) be based upon the information desires and needs of market participants (investors) or what the SASB thinks investors “should be” interested in? What conclusion would you draw if the standards that are developed by the SASB do not affect investment decisions?
What are some of the benefits of going public? Costs? Do you think that the Container Store should have gone public? Does “conscious capitalism” work for a public company? Why or why not?
Do you agree with the position in the editorial piece that General Motors should consider taxpayers ahead of stockholders and not buy back shares, at least at this point in their recovery?
In your opinion, can a firm pursue value maximization for shareholders and simultaneously pursue sustainability/social responsibility? Are these goals at odds with each other? If so, how? What advice would you give to Unilever’s CEO?
Do you think that changing the tax code to allow banks to deduct dividends would reduce the “excessive” risk taking that banks have been accused of? Can you connect all the dots in the chain of reasoning behind the proposal?
What is the distinction among the payments (that BP will pay for the Gulf oil spill) that determines whether they are tax deductible or not? For the nondeductible payments, what will be the effect on the effective tax rate (increase or decrease)?
Ford and GM estimate that they will have to spend $300 million each to implement the new revenue recognition standard. Other companies will also likely spend nontrivial amounts complying with the new standard. How would you propose measuring the benefits of this standard and whether the benefits exceed the costs?
Do you agree that accounting standards are too complex? If so, how could they be made simpler? What would be the costs of doing so? The benefits?
What is your opinion about an advanced placement (AP) course in high school for accounting, as proposed by the Pathways Commission? How would you propose implementing the “Pathways Vision Model”?
