1. Discuss five factors that may be employed to determine if a particular financial instrument is a debt or equity security.
2. Discuss the framework for analysis that may be used in the resolution of ethical dilemmas
3. Discuss the entity and parent company theories of consolidation.
4. What are accounting changes and why is it an issue. Describe the three types of accounting change
5. Discuss the IASB-FASB Norwalk agreement. Discuss how the FASB and the IASC acted to improve comparability under the Norwalk Agreement.
6. Discuss DR Scott's hierarchy of postulates and principles.
7. Discuss the use of the fair value option originally described in SFAS No. 159 now contained at FASB ASC 825-10.
8. Discuss the concept of simple vs. complex capital structures and how it relates to the reporting of earnings per share.
Part 2
1- Analyze retirement provisions.
Required:
a. Review the financial statements of Time Warner and its two competitors (Walt Disney & 21 Century Fox ) to determine if they disclose information on pension or other postretirement benefits.
b. Discuss any differences that you find.
2. Analyze the return to stockholders.
Required:
a. Calculate the following ratios:
i. Return on common stockholders' equity
ii. Common stock earning leverage ratio
iii. Financial structure ratio
b. Calculate the same ratios for Time Warner two competitor companies (Walt Disney & 21 Century Fox ) and discuss the relative performance of the three companies from the viewpoint of common stockholders.
3. Conclusion