What is the purpose of “clawing back” pay to executives and other employees? Do you find the idea substantive? Symbolic? How would you determine how much to claw back? What behaviors should trigger a claw back, if any?
So the SEC would seemingly like for firms to streamline their financial disclosures, yet firms are afraid to do so for fear of the SEC? Seems like a difficult situation to resolve. What proposals would you have to try to resolve it?
Do you think the FASB should use Actual Realized Gains (ARG) in measuring equity compensation expense, rather than Estimated Fair Value (EFV)? What would be the advantages/disadvantages of ARG over EFV?
Do you think the SEC is right to require firms to disclose gender and race of board members? Why or why not?
So, apparently some firms steer analysts to lower their forecasted earnings, and then these firms announce earnings that, surprise, beat the forecast. Is this a problem that needs to be fixed? If so, how?
Firms who are “heavy users” of non-GAAP (pro forma) earnings measures (“EBBS”) seem to have a higher propensity of accounting problems, resulting in accounting restatements. What might be the connection? If the relation between use of non-GAAP measures and accounting problems is established to be systematic, what do you propose as a solution?
The SEC wants to eliminate duplicative disclosures found elsewhere in the financial statements. How did the disclosure system get to the point where certain disclosures are required in two different places. What are some implications of eliminating duplicate disclosures? Who benefits from the proposed change? Who might lose?
Why do you think Electronic Arts decided to discontinue reporting non-GAAP measures? Who benefits from this? Who loses? Do you think their decision is a good one?
According to the article (clink to link to it), a Tesla car that was self-driving crashed. In your opinion, should this have triggered an SEC disclosure? What is the threshold for disclosure? What is the name of the form firms use for such disclosures?
The SEC can bring a case against a registered firm and use its own “in-house” judges to try the case. Do you think the proposed changes to this will be fairer?
The SEC is (again) planning to crackdown on non-GAAP disclosures. How will they do that? Will firms simply stop using them? Will the SEC give an approved list of non-GAAP disclosures? Is GAAP the “problem”?
Do you think the new revenue recognition standard will open the door to financial shenanigans, given the new focus on judgment and broad principles? How would you be able to tell if this is the case? How will the SEC monitor revenue recognition?
Why do you think Boeing’s accounting is being “probed” if the accounting complies with GAAP? Have you heard of “program accounting” before this case? Could you explain it? Should firms be investigated if good faith estimates prove to be, in hindsight, inaccurate?
If you were a the lead audit partner in charge of a corporate audit, would you mind being named as such in a new disclosure form from the PCAOB? Why or why not? Does is make any difference that this disclosure is not made part of a regulatory filing with the SEC?
Do you agree with the SEC commissioner that certain new disclosure rules do not provide information useful to a reasonable investor, but rather are being required as part of political or social activism? Should the SEC require such rules?
If you were a member of the C-suite and you had news (either good or bad) that the market does not expect you to announce on an upcoming 8-K filing, how would you determine if it is “ok” for you to buy or sell your firm’s stock?
The SEC uses “in-house” administrative judges to handle proceedings that is brings against corporations. Is this a good idea? Why or why not? Is it “fair”?
Do you think it should be up to the registrants to decide what information is relevant for investors? Who else should decide what disclosures are relevant?
In your opinion, what is the “value added” to society from such policing of “plain English” requirements of SEC filings?
