See what questions were presented to 92 manufacturing chief financial officers and how they responded.
1. Your company is:
| Item | Count | Percent % |
| Public | 49 | 53.26% |
| Private | 43 | 46.74% |
2. The revenue size of your company is:
| Item | Count | Percent % |
| Between $1 billion to $5 billion | 28 | 30.77% |
| Between $100 million and $500 million | 25 | 27.47% |
| Greater than $5 billion | 20 | 21.98% |
| Between $500 million and $1 billion | 13 | 14.29% |
| Less than $100 million | 5 | 5.49% |
3. The state in which you are headquartered:
| Item | Count | Percent % | Item | Count | Percent % | ||
| Michigan | 9 | 9.89% | Kansas | 2 | 2.20% | ||
| New Jersey | 8 | 8.79% | Maryland | 2 | 2.20% | ||
| California | 7 | 7.69% | Massachusetts | 2 | 2.20% | ||
| Texas | 7 | 7.69% | Minnesota | 2 | 2.20% | ||
| Ohio | 6 | 6.59% | Missouri | 2 | 2.20% | ||
| Florida | 5 | 5.49% | Wisconsin | 2 | 2.20% | ||
| North Carolina | 5 | 5.49% | Arizona | 1 | 1.10% | ||
| Georgia | 4 | 4.40% | Idaho | 1 | 1.10% | ||
| Indiana | 4 | 4.40% | Kentucky | 1 | 1.10% | ||
| Illinois | 3 | 3.30% | Nebraska | 1 | 1.10% | ||
| New York | 3 | 3.30% | Rhode Island | 1 | 1.10% | ||
| Oregon | 3 | 3.30% | South Carolina | 1 | 1.10% | ||
| Pennsylvania | 3 | 3.30% | Tennessee | 1 | 1.10% | ||
| Connecticut | 2 | 2.20% | Washington | 1 | 1.10% | ||
| Iowa | 2 | 2.20% |
4. Over the next six months, do you expect the U.S. economy to:
| Item | Count | Percent % |
| Improve | 43 | 46.74% |
| Remain the same | 43 | 46.74% |
| Worsen | 6 | 6.52% |
5. Over the next six months, do you expect your company’s financial prospects to:
| Item | Count | Percent % |
| Improve | 55 | 59.78% |
| Remain the same | 33 | 35.87% |
| Worsen | 4 | 4.35% |
6. Over the next six months, do you expect prices or fees charged by your company to:
| Item | Count | Percent % |
| Improve | 54 | 59.34% |
| Remain the same | 31 | 34.07% |
| Worsen | 6 | 6.59% |
7. Over the next six months, do you expect your headcount to:
| Item | Count | Percent % |
| Improve | 46 | 50.00% |
| Remain the same | 23 | 25.00% |
| Worsen | 23 | 25.00% |
8. When do you believe the U.S. economy will come out of recession?
| Item | Count | Percent % |
| 2011 | 46 | 50.00% |
| Second half of 2010 | 24 | 26.09% |
| Later than 2011 | 17 | 18.48% |
| First half of 2010 | 5 | 5.43% |
9. The best way to create jobs is:
| Item | Count | Percent % |
| Cut corporate tax rate | 34 | 40.00% |
| Cut personal income tax rates | 26 | 30.59% |
| Tax credit for new hires | 14 | 16.47% |
| Government stimulus programs | 8 | 9.41% |
| R&D credits | 3 | 3.53% |
10. Is your company reducing average costs per employee in any of these employee benefit and compensation areas?
| Item | Decrease | Same | Increase | Total |
| Salary raises | 27.2% 25 |
55.4% 51 |
17.4% 16 |
92 |
| Bonuses | 38.0% 35 |
50.0% 46 |
12.0% 11 |
92 |
| Stock options/equity based compensation | 32.6% 28 |
66.3% 57 |
1.2% 1 |
86 |
| 401 (k) match | 22.8% 21 |
73.9% 68 |
3.3% 3 |
92 |
| Health care benefits | 26.4% 24 |
68.1% 62 |
5.5% 5 |
91 |
| Life insurance benefits | 7.7% 7 |
90.1% 82 |
2.2% 2 |
91 |
| Disability benefits | 7.7% 7 |
91.2% 83 |
1.1% 1 |
91 |
| Average % | 23.1% | 70.7% | 6.1% | 635.0 |
11. About which type(s) of pricing pressure are you most concerned? (You may select more than one.)
| Item | Count | Percent % |
| Raw materials (e.g., food, metals) | 62 | 70.45% |
| Employee benefits (e.g., health care, pensions) | 49 | 55.68% |
| Energy | 28 | 31.82% |
| Insurance | 9 | 10.23% |
| Other | 4 | 4.55% |
12. Are you having difficulties accessing credit in general?
| Item | Count | Percent % |
| No | 71 | 80.68% |
| Yes | 17 | 19.32% |
13. Compared to this time last year are you more or less worried about your organization.
| Item | Count | Percent % |
| Less Worried | 49 | 55.68% |
| About the same | 33 | 37.50% |
| More worried | 6 | 6.82% |
14. The FASB and IASB will be shortly releasing an exposure draft regarding revenue recognition. The objective is to clarify the principles for recognizing revenue and to create a joint revenue recognition standard for US GAAP and IFRSs that companies can apply consistently across various industries and transactions. Are you aware of this project?
| Item | Count | Percent % |
| No | 60 | 68.18% |
| Yes | 28 | 31.82% |
15. Do you believe financial statements are too complex to be useable by the average investor?
| Item | Count | Percent % |
| No | 52 | 60.47% |
| Yes | 34 | 39.53% |
16. Does your company currently provide nonfinancial measures (Key Performance Indicators) about your organization in its financial statements?
| Item | Count | Percent % |
| No | 42 | 50.60% |
| Yes | 41 | 49.40% |
17. Who do you view as the primary users of your financial statements?
| Item | Count | Percent % |
| Current shareholders | 28 | 33.73% |
| Creditors | 16 | 19.28% |
| Management | 13 | 15.66% |
| Current owners of equity interests | 6 | 7.23% |
| Potential shareholders | 5 | 6.02% |
| Regulatory agencies | 5 | 6.02% |
| Research (sell side) analysts | 5 | 6.02% |
| Rating agencies | 3 | 3.61% |
| Other | 1 | 1.20% |
| Potential owners of equity interests | 1 | 1.20% |
18. Does your firm prepare financial statements according to International Financial Reporting Standards (IFRS)?
| Item | Count | Percent % |
| No | 63 | 75.90% |
| Yes | 20 | 24.10% |
19. Do you support a move to IFRS?
| Item | Count | Percent % |
| Yes | 44 | 53.01% |
| No, would like to continue using GAAP | 39 | 46.99% |
20. Ideally, who should set U.S. accounting standards for companies that file with the SEC?
| Item | Count | Percent % |
| A national independent board supervised by a national regulator (e.g. the Financial Accounting Standards Board) | 44 | 56.41% |
| An international independent board supervised by international entities such as the International Organization of Securities Regulators (e.g. the International Accounting Standards Board) | 22 | 28.21% |
| A national regulator (e.g the Securities and Exchange Commission) | 9 | 11.54% |
| The global accounting profession (e.g. the International Federation of Accountants) | 2 | 2.56% |
| A body designated by an international entity such as the Organization for Economic Cooperation and Development, the United Nations Council on Trade and Development or the World Trade Organization | 1 | 1.28% |
21. During 2010 and 2011, the FASB and the IASB plan to issue standards that will include major revisions to the current accounting for revenue recognition, financial instruments, leases, financial statement presentation, insurance contracts, and the conceptual framework. How should these standards be implemented in the US?
| Item | Count | Percent % |
| Using an incremental approach where no more than one major standard takes effect in a given reporting year to allow time for preparers and users to understand and implement the changes. | 28 | 35.90% |
| The standards should be implemented first in IFRS; US companies can make the transition on adoption of IFRS | 20 | 25.64% |
| The Boards are moving too quickly to implement major changes and should defer major changes in the financial reporting model until the projects have been more fully developed and discussed. | 16 | 20.51% |
| Using a "big bang" approach where all of the standards are effective for the same reporting period to improve the financial reporting model as quickly as possible. | 14 | 17.95% |
22. Should there be different recognition and measurements principles for public entities and nonpublic entities?
| Item | Count | Percent % |
| No | 44 | 58.97% |
| Yes | 22 | 28.21% |
| Don't know | 10 | 12.82% |
23. Should nonpublic entities be allowed to use simpler recognition and measurement principles when preparing financial statements?
| Item | Count | Percent % |
| No | 37 | 47.44% |
| Yes | 35 | 44.87% |
| Don't know | 6 | 7.69% |
24. In the coming year, do you believe your aggregate state effective tax rate will:
| Item | Count | Percent % |
| Increase | 47 | 61.84% |
| Remain the same | 26 | 28.95% |
| Don't know/not applicable | 2 | 7.89% |
| Decrease | 1 | 1.32% |
25. With regard to international taxation, you are most concerned about:
| Item | Count | Percent % |
| Transfer pricing | 27 | 35.53% |
| Overall global compliance burden | 19 | 25.00% |
| Repatriation of offshore earnings | 18 | 23.68% |
| Risk management in developing countries | 10 | 13.16% |
| Mergers and acquisitions | 2 | 2.63% |
26. Is your company currently taking any actions in anticipation that federal tax rates will change?
| Item | Count | Percent % |
| No | 53 | 70.67% |
| Yes | 22 | 29.33% |
27. What types of actions? (Check all that apply)
| Item | Count | Percent % |
| Reorganization of business structure | 20 | 51.28% |
| Acquisition of capital assets | 9 | 23.08% |
| Acceleration of dividend payments | 8 | 20.51% |
| Other (please use text box below to describe) | 8 | 20.51% |
| Disposition of capital assets | 7 | 17.95% |
| Modification of terms on installment sale(s) | 4 | 10.26% |
28. Does your company plan on taking any action in anticipation of the current administration's international tax proposals?
| Item | Count | Percent % |
| No | 50 | 67.57% |
| Yes | 24 | 32.43% |
29. What types of decisions or actions? (Check all that apply)
| Item | Count | Percent % |
| Foreign tax credit planning | 15 | 37.50% |
| Cash repatriation | 14 | 35.00% |
| International reorganization | 12 | 30.00% |
| International supply chain changes | 12 | 30.00% |
| Other (please use text box below to describe) | 9 | 22.50% |
