Poseidon Concepts Corporation: Boom To Bust

內容大綱
On February 25, 2013, the chief investment officer at University of Regina Investing (URI) was reviewing the draft copy of the annual report for 2012 that was to be submitted to the client, the University of Regina. One investment that stood out was Poseidon Concepts Corporation, which the fund had bought at $14.02 per share in April 2012, had reached a high of CA$16.02 in September 2012, and had eventually lost all stock value. The chief investment officer decided to review the transaction to identify any warning signs or red flags indicating that Poseidon Concepts Corporation’s management was involved in earnings manipulation. If there were signs, and if they had been identified earlier, could URI have avoided incurred losses?
學習目標
The case can be used in several undergraduate or graduate courses including intermediate and advanced financial accounting, forensic accounting, corporate finance, investment analysis, and portfolio management. It is particularly suitable for courses that cover topics related to earnings management, bad debt, and identification of accounting fraud. After completion of the case, students will be able to:<ul><li>understand how to analyze and value accounts receivable;</li><li>discuss the issues related to revenue recognition policies; and</li><li>evaluate issues of corporate governance and internal controls.</li><ul>
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