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Unformatted text preview: 10 percent opposed to 8 percent)-Do you think management manipulate discount rates in order to meet earnings benchmarks (e.g. analyst forecast expectations or internal compensation contract targets)?-How can auditors play a role in ensuring discount rates used in fair value calculations are appropriate?-Historical cost accounting methods are criticized because they are not relevant to investors (e.g. they do not capture the true economic cost of assets and liabilities). Fair value is criticized because it is not as reliable as it is based on management estimates and discretion. Discuss the pros and cons. Turn in a write-up no more than 4 double-spaced pages (12 point font and times new roman) for the two problems from Chapter 6 and the additional thoughts regarding discount rates and their impact on accounting values....
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This note was uploaded on 10/20/2011 for the course ACC 301 taught by Professor Anthony during the Summer '11 term at Michigan State University.
- Summer '11