The Big Question Chapter 11 Day 2 Section 2 by

2018-03-21 18:09:51 UTC

It should have to imapair the reserves once other sources of energy start to deplete the demand for oil and gas; however, that hasn’t yet happened to a significant extent yet. Therefore the projected cash flows are likely higher than the carrying value of the reserves and thus an impairment is not necessary.

No

2018-03-21 18:09:51 UTC

Faithful representation of the value of their most valuable asset, these oil reserves, is being violated without the impairment

2018-03-21 18:09:54 UTC

The global response to climate change is an impact that would be material to their future cash flow valuations, therefore they should be adjusting their O&G reserves valuation based on this global response.

2018-03-21 18:10:00 UTC

Their expected future cash flows of the oil/gas reserves are changed from this response to climate change. Therefore, they should impair these two assets in response to economic changes for the assets.

It is necessary to record impairments to disclose faithful representation.

2018-03-21 18:10:01 UTC

2018-03-21 18:10:05 UTC

Assets should be recorded at their fair market value in order to smooth potential loss. There is real, observable market data to show what it should be valued at.

2018-03-21 18:10:12 UTC

Exxon doesn’t seem to completely be factoring in the impact of a growing concern for climate change might have on their future oil tapping. Even with conservative estimates, it seems they could be over estimating.

No

2018-03-21 18:10:13 UTC

The expected future cash flows are impacted and an impairment must be recorded.

No

2018-03-21 18:10:16 UTC

Exxon needs to write down their impairments. Climate change and global warming are two huge environmental factors that have definitely impacted the reserves of Exxon. Therefore, it is their duty to impair these resources if need be to accurately reflect the environmental impact that climate change and global warming have.

No

2018-03-21 18:10:21 UTC

Because it is an asset, and it has to accord with FR

No

2018-03-21 18:10:25 UTC

It’s not correct because the future cash flow is affected .

2018-03-21 18:10:29 UTC

Exon should write down its oil and gas reserves because all of their competitors are doing it, so if they do not write down then it decreases comparability between companies.

No

2018-03-21 18:10:33 UTC

There could be a significant decrease in fair value of the asset. The other oil companies recorded decrease of 50 billion dollars while Exxon recorded none.

2018-03-21 18:10:35 UTC

Exxon does not need to write down its oil and gas reserves because the global response to climate change does not necessarily mean that they will need to impair the assets. Only when they actually begin to experience a depleted demand for oil and gas, they should then impair their assets.

No

2018-03-21 18:10:35 UTC

Exxon needs to write down the impairments because global warming and climate change definitely impact their value

It should probably write down its impairment because if their was a tax per unit of fossil fuel that could be determined based upon the data

2018-03-21 18:10:35 UTC

No

2018-03-21 18:10:36 UTC

It should follow the practices of the rest of firms

No

2018-03-21 18:10:38 UTC

They should write down their reserves to achieve faithful representation and comparability between companies

2018-03-21 18:10:40 UTC

As long as the fair value changes, there should be impairment write down

2018-03-21 18:10:40 UTC

2018-03-21 18:10:50 UTC

They are correct because it could get pricey to constantly be adjusting reserves based on global climate change policies.

Yes, correct.

2018-03-21 18:11:17 UTC

No

2018-03-21 18:11:23 UTC

They need to represent their information faithfully by writing down (impairing) its oil and gas reserves

I think they are right because I don't know how you measure anticipated global response to climate change

2018-03-21 18:11:24 UTC

Assets should be recorded at fair value

2018-03-21 18:11:35 UTC

2018-03-21 18:11:36 UTC

It is important to account for impairments. They have been overstating their assets.

2018-03-21 18:11:40 UTC

They should impair its oil and gas reserves because its value has changed to to external factors. Not recording the changes would lead to improper valuation.

2018-03-21 18:11:57 UTC

The reserves should be written down as the global response to climate change will impact expected future cash flows.

2018-03-21 18:12:16 UTC

Yes, given that the future is uncertain, I think impairment would be too conservative of an approach. Right now oil and gas is the primary source of energy

I think Exxon is correct because this is not a certain expense and it is hard to estimate. Since it hasn't happened yet, it is not a current concern.

2018-03-21 18:12:21 UTC

2018-03-21 18:12:31 UTC

They are correct because it could get pricey to constantly be adjusting reserves based on global climate change policies.

2018-03-21 18:12:33 UTC

2018-03-21 18:12:36 UTC

An anticipated global response to climate change is definitely material and Exxon should impair its oil and gas reserves.

2018-03-21 18:13:01 UTC

Yes, correct.

Yes.

2018-03-21 18:14:54 UTC

There is a lot of uncertainty going forward and hard to estimate where demand and supply will be at in the future. Due to this I feel Exxon does not have to impair its oil and gas reserves.