06 Aug What is the underlying accounting and financial reporting concept at issue as described in EITF Issue No. 01-9 with respect to the way Monsanto accounted for customer rebates? Explain in your own words how Monsanto’s accounting led to materially misstated financial statements.
After reading Case 7-4: Monsanto Company Roundup, post your answers to the following questions in the Chapter 7 discussion forum. Be sure to support and explain your answers.
During the summer session, you must post an initial post to two discussion forums and respond in at least six additional forums (not including your introduction).
QUESTIONS:
1. What is the underlying accounting and financial reporting concept at issue as described in EITF Issue No. 01-9 with respect to the way Monsanto accounted for customer rebates? Explain in your own words how Monsanto’s accounting led to materially misstated financial statements.
2. Given that Monsanto was under great pressure from competitors that sold generic brands similar to Roundup, would you characterize the Monsanto situation as a business failure, an accounting failure, and/or an audit failure? Explain.
3. Of what value are the ethics and compliance requirements agreed to by Monsanto? Do you believe all companies that experience financial fraud should be required to institute such changes? Can such requirements change the culture of a global company such as Monsanto? Explain.
4. Do you believe restated financial statements should be audited by a different firm than the one that prepared the original financials? Why or why not? Consider costs and benefits in your analysis.
Requirements: As much as needs
