The Big Question Chapter 11 Day 2 Section 3 by https://padlet.com/matt_griffith/jus3ubis2f0e Is Exxon correct not to impair its oil and gas reserves based on anticipated global response to climate change? en-us 2018-03-20 18:00:19 UTC 2018-03-21 19:45:56 UTC hello@padlet.com Exxon https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731389 Since the estimated net future cash flows are lower, then the value of the assets should also be lower.]]> 2018-03-21 19:38:30 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731389 1. Given that its peers all wrote down the value, including Shell, BP and etc. Given GAAP comparability, Exxon should... https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731474 2. According to SEC, climate change may lead to decline in fossil fuel needs in the future. It would definitely change Exxon's future cash flow. ]]> 2018-03-21 19:38:43 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731474 Exxon need to write down since this will lead to the lower asset https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731491 2018-03-21 19:38:46 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731491 Exxon needs to impair their reserves because we are in a time of change where future value is uncertain https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731500 2018-03-21 19:38:47 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731500 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731502 I think Exxon should write down for better comparison with other companies that are in the same industry.]]> 2018-03-21 19:38:47 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731502 Exxon https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731518 2018-03-21 19:38:49 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731518 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731586 exxon should not base their evaluation on something that is unkown to happen in the future especially if other companies aren't doing that]]> 2018-03-21 19:38:59 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731586 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731654
  • It should impair its reserves to reflect their value, which has been lowered because of oil and gas prices and the global response to climate change. 
    • ]]>     2018-03-21 19:39:08 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731654     https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731698
  • By not impairing, Exxon is not being neutral and the company’s assets lack comparability to other companies’ similar assets
    • ]]>     2018-03-21 19:39:14 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731698     https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731715 Exxon should be writing down its oil and gas reserves as its competitors. However, it should not in response to climate change, lack of current concrete regulations would be hard to make a quality value assessment.]]> 2018-03-21 19:39:16 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731715 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731725 There is no evidence to guarantee that reserves will not be used in the future; this is just a concern that analysts have.  ]]> 2018-03-21 19:39:18 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731725 Exxon https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731808 2018-03-21 19:39:29 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731808 They already did right them down https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731814 2018-03-21 19:39:30 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731814 Base on evaluation of assets. Should write down to actual https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731820 2018-03-21 19:39:31 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731820 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731835 Exxon should impair their oil/gas reserves as the rising costs of compliance with emission regulations provide almost certain expenses in future cash flows. Therefore, impairment may be necessary as regulatory costs are probably guaranteed for future cash flows.]]> 2018-03-21 19:39:33 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731835 Exxon bluehorse16 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731840 Exxon should write it down as an impairment loss because there might not be less use of fossil fuels in the future compared to now, but other sources will be utilized and a higher increasing rate.]]> 2018-03-21 19:39:34 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731840 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731846 in order to be comparable to other companies in its industry]]> 2018-03-21 19:39:35 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731846 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731901 2018-03-21 19:39:44 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731901 Exxon https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731909 Since all the competitors of exxon are writing down the oil and gas reserves it would be best for comparibility reasons for Exxon to also impair the reserves ]]> 2018-03-21 19:39:45 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244731909 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732050 exxon should write it down since the value changed


    ]]>     2018-03-21 19:40:06 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732050     https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732082 Yes because it needs to be comparable to other companies and investors should know what is actually going on ]]> 2018-03-21 19:40:11 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732082 Exxon should write down those reserves https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732142 Since expected future cash flows decrease 

    ]]>     2018-03-21 19:40:20 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732142     https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732178
  • Once you've written down impairments you don't reasses them 
    • ]]>     2018-03-21 19:40:26 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732178     https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732186 2018-03-21 19:40:28 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732186 Exxon https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732349 Exxon should not use impairment, since the impairment itself is not clear.]]> 2018-03-21 19:40:48 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732349 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732389 Exxon’s reason was that they were being conservative in their initial valuation, so I think it’s odd that they would argue this way when the future cash flows are what really drive the impairment.]]> 2018-03-21 19:40:54 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732389 https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732552 Once you write down an impairment you don't reassess it ]]> 2018-03-21 19:41:13 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732552 No https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732647 As there assumption is not perfect ]]> 2018-03-21 19:41:24 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244732647 it is impossible to predict the price change. https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244733769 Is this uploaded tho?!?



    ]]>     2018-03-21 19:44:04 UTC https://padlet.com/matt_griffith/jus3ubis2f0e/wish/244733769