• Determine whether Procter & Gamble complies with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) in its financial reporting.
• Determine if the pension plan(s) is (are) part of a multi-employer plan or if the pension plans are single employer plans for Procter & Gamble.
• Describe the components of Procter & Gamble defined benefit costs.
  • Illustrate the trend in these costs over the latest 3 years.
• Critique the cash flow impact of the pension plan in each of the last 3 years for Procter & Gamble.
• Identify the assumptions used each year for the calculations of pension plan obligations and expense amounts for Procter & Gamble.
• Note any changes in assumptions over the 3-year period for Procter & Gamble.
  • Analyze the impact these changes have had on the reporting of the pension plan obligations (e.g, periodic cost, net pension liability, etc.)
• Determine if the assumptions used each year are internally consistent for Procter & Gamble.
• Determine if the expected rate of return on plan assets is reasonable, given the stated targeted asset allocation of the plan for Procter & Gamble.
• Compare the most recent net underfunded pension liability to Procter & Gamble current market equity and total debt.
  • Justify whether the amount of the net underfunded pension liability is reasonable based on this comparison.
• Estimate the amount of annual cash flow Procter & Gamble would have to contribute to the plan if the company wanted to fully fund the plan by the end of 15 years.
  • Compare this amount to the company's operating cash flow and capital expenditures from each of the past 3 years.
• Explain the role of the Pension Benefit Guaranty Corporation (PBGC).
  • Predict the impact the failure of this pension plan would have on the PBGC as well as the participants in the plan.