Why are goodwill impairments down? What causes impairments? Should we still consider going back to an amortization model of accounting for goodwill?
Do you agree that the risk associated with climate change needs to have a “bigger priority” in a firm’s overall risk assessment? If you were CFO, what would you/should you do?
How do you decide (as CFO) what to do with the all the cash? How would you describe the effects of governmental fiscal policy in making capital allocation decisions?
Does the prediction that labor (human capital) in finance departments will be increasingly replaced in the next business downturn have any implications for you in your career goals?
If you were in the C-suite, what would you recommend be done about the “problem” of so much cash? How would you spend it? How would you decide? Do you believe it is true that European “finance chiefs . . . are often more fiscally conservative than American counterparts”? If so, why do you think that is?
Do you think BlackRock is “right” to require firms to discuss these societal issues, in addition to financial metrics? Why or why not? What is BlackRock hoping to achieve? Is this the best way for BlackRock to achieve its goals?
How can a write-down on oil reserves be beneficial to Exxon’s executives (i.e., “bail them out”)? How would you determine if a probe into accounting practice were “politically motivated”?
Facebook had an accounting change that resulted in a $900 million boost to earnings. The FASB now requires “excess tax benefits” from stock options to flow through the income statement, rather than APIC. Does the change improve financial reporting? How?
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?
How is a “bad” M&A deal reflected in accounting measures? Do you think firms do pay more for a target in anticipation of being able to carry out the integration efficiently and effectively?
If you were on the board of directors, how would you try to quantify synergy as part of your due diligence responsibility in M&A? Is it necessary to do so?
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?
What would you do, as a CFO, to try to offset the increase in the underfunded status of your DB pension plan caused by declining interest rates?
Fitbit’s 8-K (click on Ex. 99). Try to follow the numbers mentioned in the above article. What’s driving the reduced profitability?
Apparently a large portion of BP’s settlement for the Gulf Oil spill is tax deductible. In your opinion, should it be tax deductible? Why or why not? Assuming the deduction will be taken in the future, what is the entry to recognize tax expense and the deferred tax asset? What is the effect on the effective tax rate on the nondeductible portion?
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?
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?
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 think it should be up to the registrants to decide what information is relevant for investors? Who else should decide what disclosures are relevant?
