What are the various causes of underfunded pensions? If you were CFO of a company with a DB plan, what factors would you consider in deciding whether to transfer your pension to an insurance company such as Prudential? Should taxpayers be responsible for the PBGC?
In your opinion, how much equity should be included in executive compensation packages? How would you determine an appropriate amount?
Do you agree that newly required disclosures of environmental and social issues will increase the EU’s competitiveness and create more jobs? If so, how? If not, why not?
In your opinion, what is the “value added” to society from such policing of “plain English” requirements of SEC filings?
If the SEC allows non-US registrants to use IFRS, why shouldn’t US registrants be allowed to do so as well? What is the downside of allowing US registrants to file using IFRS?
If there are so many deficiencies in the audit of revenues, what do you think are the reasons? What do you propose as a solution? What are possible consequences for investors if revenues are misstated?
Do you agree with the editorial that credit rating reforms will be ineffective? Namely, will greater disclosure about borrowers’ credit ratings reduce the likelihood of another financial crisis? How should credit rating agencies be paid for their ratings?
Will you personally consider a firm’s “good deeds” in deciding whether or not to take a job? Why or why not? Do you think such deeds affect the value of the firm? If so, how? If a firm donates time or money, what’s the journal entry?
So managers will be required to give early warning about whether their firm is a “going concern.” Do you believe this increased disclosure by managers is beneficial? For whom? Is it possible that such disclosures could become self-fulfilling? How so?
The SEC has a new “chief accountant.” He is a retired partner of a Big 4 firm. What do you think in his background is a good match for the requirements of the position? Do you seen any downsides in appointing him to this position?
The chairman of the FASB says that complexity in accounting standards can be costly to investors and companies. Of the examples provided in the article, how would you determine the cost to companies of providing the information? For instance, how do you measure the cost of distinguishing current deferred tax assets from noncurrent deferred tax assets, and, using your measure, how costly do you think this disclosure is for companies to make?
What are companies doing with all that cash raised from issuing bonds? Name as many ratios as you can that would be affected by the changing capital structure. Will capital structure changes affect the value of the firm?
Who do you think is right, the chairman of the IASB (Mr. Hoogervorst), or the vice-chairman of the IASB (Mr. Mackintosh), about whether global accounting standards are achievable and inevitable? Does it matter if there are global standards or not? What are the benefits of global standards? What are the costs?
If you were asked on a job interview, could you explain the relation between interest rates and the funding status of defined benefit pension plans? Could you explain who are the winners and who are the losers (and why) by changing the interest rate to a 25 year average rate from a 2 year average rate?
Why do you think the IASB and FASB changed their accounting for estimating loan loss reserves (aka, allowance for bad debt)? If smaller banks are unprepared to make the changes, who do you think should shoulder the blame?
Which lease accounting model do you think is “better”: the IASB’s or the FASB’s? Will it matter if the IASB and FASB do not agree and go in separate directions?
What is your opinion about getting rid of corporate taxes altogether and just requiring shareholders to pay taxes on dividends and capital gains?
According to the article, accounting as an industry has an average pre-tax profit margin of 19.8%. In your opinion, why do you think accounting firms can command such a relatively high margin?
What do you think are the implications of the NLRB ruling about joint employer relationships for McDonald’s and it franchisees? Would this ruling possibly affect recognition of contingent liabilities? If so, how?
Do you believe that fewer accounting restatements means that the quality of financial reporting has improved? How would you define high quality financial statements?
