If you were the CFO of Monsanto, what options do you have to try to counter market volatility and its effects on the pension funded status? Which would you choose? Why?
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?
Lululemon’s pants are “too” see-through due to a quality control issue. What is the entry that the firm will have to make to write-off the inventory? What is the effect of the entry on current and future profits? How have or will investors respond? Who should be held responsible for the quality problems?
Do you think the contemplated “expected loss” model in accounting for loan impairment is “better” than the current “incurred loss” model? If so, how? For whom?
HarperCollins is closing warehouses for printed books. Do you think this move surprises investors? Why or why not? Will HarperCollins likely book an impairment loss? A restructuring charge? Why?
Does the IFRS approach in measuring impairment put BP at a “disadvantage” relative to Exxon? If so, how? Would BP be able to reverse the impairment? If Exxon had an impairment, would it be able to reverse it? Exactly what is the “time value” component of the analysis these days?
Can you replicate Microsoft’s $6.2 charge? Is the charge a leading or a lagging indicator for the marketplace?
Who wanted the goodwill impairment test changed? Preparers? Auditors? Users? Will the changes result in “better” information?
P&G’s profit dropped 49% from the previous quarter. How do you think the stock price would react to the information? On what does any reaction depend? Is a goodwill impairment a leading or lagging indicator?
At what point should Exxon write-off the oil rigs and other assets “nationalized” by the Venezuelan government? What disclosures, if any, should Exxon have made to alert you to the risk of nationalization of its assets there? Where would you look to see if such disclosures were made?
Do you believe the European banks are intentionally delaying write-downs of goodwill? If so, why? If any delay were to go against IFRS, who should enforce the standards?
