Why are new IPOs happening now? What types of firms are going public? What is the journal entry for an IPO?
If you were the CEO or CFO of a publicly traded firm, would you make your quarterly earnings announcement on Facebook? Why or why not? What do you think will be the outcome of the Netflix case?
JC Penney’s sales declined dramatically and may decline further. Are firms required to let investors know about such trends? If so, where do they disclose the information? What are auditors’ responsibilities with respect to such disclosures, if any?
If you were a retiree of Kodak, what would be your reaction to the news that Kodak had settled its pension obligation to you with a transfer of its film business to your pension plan?
Leslie Seidman is stepping down as chair of the FASB. What do you think are the attributes of her replacement that awarded him the job? Is this a job that would appeal to you? Why or why not?
Do you believe it was necessary for governmental intervention into the private market for audits? Why or why not? Why do you believe 14 years was chosen as a time by which firms must terminate their audit firm and hire a new one?
So, does this mean, when you retire, you’ll get a bottle of scotch instead of a paycheck? How will the substitution of inventory for cash funding possibly affect the funding status?
Will the proposed disclosures about sustainability affect your decision to invest in a firm? To work for a firm? Why or why not?
Pfizer is highlighted as a firm that allegedly “dodges” tax by shifting profits overseas. How does it do this? Would not lowering the tax rate in the U.S. reduce the tendency toward this sort of practice? What other policy changes would you recommend? Given the human capital that is provided at these firms by employees and the financial capital that is provided by savers/investors/pension plans/etc., why is the statement made that corporations “aren’t human”?
On March 20, 2013, all of Hewlett Packard’s board members were reelected. How did you vote, if you did, or would have voted, if you could have? Why?
Suntech (a Chinese manufacturer of solar panels) is going into bankruptcy. Who will have first claims on any remaining assets? Why are the creditors not treated equally? What are the implications for foreign investors?
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?
What do you think is the link between having women on boards of directors and superior stock returns? Do you think that this is a factor that you will consider before investing in a company? Are there other characteristics of board members that should be considered?
Why do US firms have so much cash “stashed”? Why is so much of it overseas? Why do you think firms favor capex and dividends over acquisitions and share repurchases? If you were the CFO, what are some of the factors that you would consider in deciding what to do with the cash?
What do cuts in dividends suggest about a firm’s future? Why do you think AT&T may be considering selling “non core” assets? In your opinion, is this a good idea? What are the potential legal consequences for firms who divulge potential market-moving information at nonpublic “dinner meetings”?
Taxes affect individuals’ behavior, as well as corporate behavior. If you were a politician, what would you do, if anything, to change the corporate tax policy in the U.S.? If you were the CFO for one of the firms in the article, what would you advise the government to do to change the corporate tax policy in the U.S.?
Do you agree that the “expected loss” model is better than the “incurred loss” model? Why or why not? Can using an expected loss model become a self-fulfilling prophecy and exacerbate pro-cyclicality, which many claim worsened the financial crisis?
Shareholders in Switzerland now have the authority to approve or block proposed compensation for executives. Do you believe this is appropriate? Why or why not? What are some potential consequences of blocking compensation plans for executives? Should such authority be given to shareholders for U.S. firms? Why or why not?
Do you believe that the measures used to identify the “25 best companies” are appropriate? Why or why not? How were the measures developed? Who developed them? Are these stakeholders appropriate for deciding the “best companies”?
In a critical reading of this announcement, why do you really think the IASB offered the FASB a seat at the table on its new 12 member forum?
