Chapter 1, Introductory Cases Dublin Small Animal Clinic, Inc. 1 page; introductory
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- 13 pages; intermediate to advanced
- Inventory valuation Standard cost systems for discrete-part production manufacturing
- Chapter 4, Financial Reporting, IFRS
- Impairments Accounting estimates
24 pages; advancedFinancial restatementsAccrualsCorporate governanceJudgment and accounting errorsDocumentationMaterialityPrinciples versus rule based accounting standardsAfter Michael Dell retired, there were allegations that senior management manipulated accounting numbers to maximize executive bonuses. Dell delayed its 2006 annual report by ten months and then restated four years of accounting financials because of the allegations and SEC investigations. The case covers 20-25 different accounting issues. It is an excellent case in that can students learn about numerous different accounting rules in a real setting, and then discuss whether the rules should even exist, since most of them do not exist under IFRS. Dell recorded adjustments for at least 20 different accounting items, but the restatement only decreased net income by $100 million for the four years 2003-2006. The total restatement equaled only one tenth of a percent of Dell’s after tax income for the period; the investigation cost $205 million. I usually tell students that if Dell had hired ten different accounting firms to review its financial reporting, it is likely that five would have determined that net income should have been slightly higher than reported and five would have determined that net income should have been slightly lower. The case also describes numerous changes that Dell made to its accounting organization and accounting practices, and that it made to its accounting oversight functions. The case is excellent for classroom or for an exam, either as a take-home exam or where students are given the case in advance, and then asked questions in the exam. I have used it all three ways. The case takes 90-120 minutes to prepare for class and 4-6 hours to prepare for an exam because there are so many issues. Because there are so many issues, students learn quite a bit when preparing for the exam (similar to Revenue Recognition A and B). Best uses:Undergraduate intermediate accounting First-year MBA/Executive MBA financial accounting Financial reporting Financial statement analysis 21.The Boeing Company: Retiree Benefits, 2008 13 pages; intermediate to advancedAccounting for defined benefit retirement plansAccounting for retiree health care benefitsThis is a relatively straightforward case that covers Boeing’s defined benefit pension plan and its retiree benefit health care plan reporting. The case is interesting because Boeing’s pension fund went from being $5 billion overfunded in 2007 to $9 billion underfunded in 2008 because of wide swings in its investment returns. The case is also interesting because Boeing’s retiree health care fund has nearly $8 billion in liabilities and almost no assets (less than $100 million) and because when Boeing computes its expected return on plan assets, it uses a five-year average value of plan assets rather than actual assets. Best uses:Undergraduate intermediate accounting First-year MBA/Executive MBA financial accounting Financial reporting Financial statement analysis Valuation
Use with:Retiree Benefits in the United States (Chapter 7) Brief Excel Case: Defined Benefit Retirement Plans (Chapter 8) 22.Carton Medical Devices (A) 18 pages; advancedInventory valuationStandard cost systems for discrete-part production manufacturingThis case describes a standard cost system for a discrete part manufacturing firm. The case is clearly more of a cost accounting case than a financial reporting case. However, most students will not take a cost accounting course, so I use this to explain what is needed to compute a reasonably accurate product cost number for either inventory valuation or for cost analysis. Best uses:Undergraduate intermediate accounting Undergraduate cost accounting Graduate managerial or cost accounting First-year MBA/Executive MBA financial or managerial accounting Chapter 4, Financial Reporting, IFRS23.Asset Impairments: the recession of 2008-2009 15 pages; intermediateImpairmentsAccounting estimatesFinancial disclosuresThis case explains various methods firms use to compute cost under U.S. GAAP and IFRS. The case includes discussions of: historical cost; lower of cost or market (U.S. GAAP); lower of cost or net realizable value (IFRS); fair value under IFRS and U.S. GAAP, and; impairment for goodwill and other assets under both IFRS and U.S. GAAP. The case then provides impairment notes for three IFRS reporting firms (Nestle, Swatch Group, and Royal Bank of Scotland) and two U.S. GAAP reporting firms (News Corp and CBS Corporation). The IFRS reporting firms have far more detailed disclosures and the disclosures are considerably more informative. The case is a good introduction to various cost measures. It also provides a good overview of impairment testing and impairment disclosures under IFRS and U.S. GAAP. The case can be used with Vivendi Group: Goodwill Impairment Test (Chapter 4), which provides the impairment disclosure note for Vivendi, a disclosure that is more detailed than any of the five disclosures in this case.
Best uses:Undergraduate intermediate accounting First-year MBA/Executive MBA financial accounting Financial reporting Financial statement analysis 24.Vivendi Group: Goodwill Impairment Test 2 pages; intermediateImpairmentsAccounting estimatesFinancial disclosuresThis case includes the impairment disclosure note for Vivendi Group. The disclosure is more detailed than the five notes in Asset Impairments: the recession of 2008-2009 (Chapter 4). It discloses by how much assumptions would need to change before Vivendi would be required to record an asset impairment. Best uses:Undergraduate intermediate accounting First-year MBA/Executive MBA financial accounting Financial reporting Financial statement analysis 25.Depreciation in the semiconductor industry Directory: resource uploads -> downloads downloads -> Chapter 19 Chapter Outline downloads -> Chapter 1 Practice Quiz Introducing the Economic Way of Thinking downloads -> Bltc-8e Case Problem with Sample Answer Chapter 30: Partnerships 20. 5 Case Problem with Sample Answer downloads -> Cross-7e: Case Problem with Sample Answer downloads -> Atmospheric circulation downloads -> September 3, 2007 downloads -> August 30 2009 Website Update downloads -> Chapter 3 exercises downloads -> Review Sheet: Chapt. 1: The Moral Point of View Moral concerns are unavoidable in life. Ethics downloads -> Chapter 17 Chapter Outline Download 123.35 Kb. Share with your friends:
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