Directions: Please answer all questions!! Doesn't have to be a certain length, just answer questions throughout. NO COPY AND PASTE,, IF YOU USE INFORMATION FROM A SITE,, PLEASE CITE THE SOURCE!!
Part 5 Discussion 1:
"Fair Market Accounting" Please respond to the following:
Create an argument for the use of Fair Market Accounting as opposed to historical cost. Provide support for your argument.
Evaluate the effectiveness of the accounting principle guidelines for determining the market value of an asset, indicating improvements to these guidelines. Provide support for your recommendations.
Part 5 Discussion 2:
"Accounting for Derivatives" Please respond to the following:
Assess the risks associated with derivatives instruments, indicating how these risks may be minimized for a publically traded company. Provide support for your rationale.
As an investor, assess the potential financial concerns to be raised when reviewing the financial statements of a publically traded company containing derivative instruments providing a recommendation for how the concerns may be identified and addressed.
Part 6 Discussion 1:
"Accounting Quality" Please respond to the following:
The Sarbanes-Oxley (SOX) Act was created with the intent of improving the quality of accounting, reliability of financial statements to investors, and providing oversight to accounting professionals through the creation of a new federal agency, Public Accounting Company Oversight Board (PACOB). Create an argument supporting whether SOX achieved these goals, and whether financial data reported today is more accurate and reliable than prior to the Act. Provide support for your rationale.
Assess the impact to the Public Accounting Profession with the creation of the PACOB and the inability of the profession to be self-regulated. Indicate your level of support for the federal regulation of the profession. Provide a rationale for your response.
Part 6 Discussion 2:
"Restated Financial Data" Please respond to the following:
Assess the impact to public trust when a publically traded company restates its financial data, indicating how negative impressions may be minimized. Provide support for your rationale.
Evaluate the current trend of companies restating financial statements. Indicate the key drivers of this trend. Predict the trend over the next five years, providing support for your rationale.