How would you have voted on Chipotle’s executive compensation pay plan? Is $25 million for the CEO “too much”? How would you decide if pay is excessive?
What is your opinion about Walmart’s use of non-GAAP measures in deciding whether or not bonuses are paid?
In your opinion, is the use of non-GAAP measures in an IPO misleading? Or, is it truly helpful? If the latter, do you think GAAP is deficient? Should, for example, the measure of “free cash flow” be standardized by the FASB if it is deemed relevant for investor decisions?
Why would banks use net debt-to-EBITDA as a constraint on borrowing? What is a common characteristic of those firms that are already highly levered (with a ratio above 5)?
Should the SEC force companies to adopt SASB standards, in addition to FASB standards? If you were a CEO, would you voluntarily use SASB standards? What are the costs and the benefits of using SASB standards?
How would you interpret the data re: revenues and capex? What other data or ratios would help you decide what’s happening? If you were the CEO of a firm, how would you set your capex budget?
Why does the author consider the joint IASB/FASB revenue recognition to be the most successful one yet? How would you measure success on these joint projects?
If a firm has so much cash, why do they borrow more cash to pay a dividend to shareholders, or to buy back stock? Do you support a territorial tax system? Why or why not?
If you were the CFO of a publicly traded firm, would you want a DB pension plan or a DC? If you were an employee, which would you prefer? How will the increased longevity wind its way through to the financial statements? That is, what accounts are affected, and how?
If you were the CFO of a publicly traded firm, what are some of the considerations you would make in determining whether to disclose non-GAAP, pro forma measures to shareholders and other constituents? Give an example of a non-GAAP measure that you think would be appropriate for, say, a retailer; a manufacturer.
The lease accounting saga continues with no agreement in sight. If you were on the FASB or the IASB, whom would you consider the main constituency for any new rules? Shareholders, analysts? Others? How would this constituency affect your standard setting decisions? What does the analyst community want (according to the article)?
What is your opinion about the legislation to exempt small companies from XBRL? What are the arguments on both sides of the issue? How would you have voted on the bill if you were a member of the U.S. congress? Do you believe the intended effects of the bill will materialize?
Given the diversities and complexities around the globe (cultural, religious, political, among others), how likely is it that a single set of financial standards, used globally, will be successfully achieved?
Radio Shack will close up to 1,100 stores. What are the ratios that may have predicted store closings? What sort of accounting event would require recognition of the cost of the store closings? What future results (on future financial statements) do you think will be affected by the store closings?
Should the Financial Accounting Foundation (the FASB’s parent organization) make the $3 million payment to the IASB? What are some of the ramifications?
What is DuPont doing with the cash that it does not have to use to fund the pension plan assets? If you were the CFO, what would you do if you found yourself with “freed-up” cash? What is the expected effect on pension funded status from the new mortality tables from the Society of Actuaries? What are some other considerations before spending the cash?
Describe some of the ripple effects of changing lease accounting (where operating leases would be capitalized). Should the standard setters take any of these effects into consideration when debating the new lease standards? Why or why not?
Why do you think Exxon has resisted a write-down? Are there other public disclosures that would let investors assess the values on these assets so they could make the adjustments themselves?
