Citigroup assignment questions1. how did citigroup acqu

1. Citigroup Assignment Questions
1. How did Citigroup “acquire” its large deferred tax asset, and
what future economic benefit does it represent?
2. What does Mike Mayo think Citigroup should do (be
specific)? Describe how this would affect Citigroup’s financial
statements (in words; you do NOT need to provide journal
entries).
3. Do you agree with Mayo’s concerns about the extent of
Citigroup’s DTAs? Why or why not?
4. Why might Citigroup be reluctant to follow Mayo’s advice?
5. Mayo is somewhat unusual among analysts because he points
out negative characteristics of companies he covers. Give two
reasons why analysts might be generally positive about the
companies they cover.
6. Refer to Exhibit 1 for details of the GAAP standard on
deferred taxes (see especially the section on “Valuation
Allowances”). If you were the KPMG partner in charge of the
Citigroup audit, would you sign off on Citigroup’s financial
statements (assuming the firm did not recognize the valuation
allowance)? Why or why not?
Individual assignment instruction
1. Research the case study reading named “Citigroup”.

2. 2. Write a 2-3 page paper (memo) answering the case study
questions.
3. Answer the case study questions following instruction below:
a. Times new roman, 12-point font with 1” margins on each side
(double-spaced)
b. Recommended format of the paper: Introduction, Headings
for each question, Conclusion/Summary
c. Discuss in appropriate light of external or current event
information.
Due on Tueday, October 12th, before 10 PM, US central
time(Chicago)