You are an accountant for the Lanthier Company. The president of the company calls you into the office and says, ?oWe have to find a way to reduce our pension costs. They are too high and they are making us uncompetitive against our foreign competitors whose employees have state-funded pensions. I think we might have to abandon our defined benefit plan, but I know the employees would not be happy about that. I was also thinking that perhaps we could raise the discount rate we use up to the high end of the acceptable range. I also think we need a trustee who will pursue a more aggressive investment strategy for the pension funds; that way we can raise our expected rate of return.??
Required
From financial reporting and ethical perspectives, discuss the issues raised by this situation.