學門類別
最新個案
- Leadership Imperatives in an AI World
- Vodafone Idea Merger - Unpacking IS Integration Strategies
- V21 Landmarks Pvt. Ltd: Scaling Newer Heights in Real Estate Entrepreneurship
- Snapchat’s Dilemma: Growth or Financial Sustainability
- Did I Just Cross the Line and Harass a Colleague?
- Predicting the Future Impacts of AI: McLuhan’s Tetrad Framework
- Porsche Drive (A) and (B): Student Spreadsheet
- Porsche Drive (B): Vehicle Subscription Strategy
- TNT Assignment: Financial Ratio Code Cracker
- Winsol: An Opportunity For Solar Expansion
Infosys: Assessing Earnings Quality
內容大綱
In 2024, Infosys Limited was the second-largest company in India’s information technology software industry. Its software services offerings were diversified across different sectors, with a large part coming from exports. As required by India’s government, Infosys Limited applied Indian accounting standards in its preparation and presentation of financial statements. A senior analyst with an investment advisory firm in India, was asked to evaluate how the new Indian accounting standard, Ind AS 115, impacted the performance of Infosys Limited and its competitors by reviewing financial performance in recent years and results for the last three quarters of fiscal year 2023–24. Which specific ratios will provide an indication of prudent revenue recognition? What was the impact of Ind AS 115 on Infosys?
學習目標
The case is suitable for graduate-level courses on financial accounting, financial statement analysis. This case is also suitable for in-house company training and management development programs for practitioners of forensic accounting and financial accounting for non-finance executives. This case helps students understand the concept of financial exploration on earnings quality using both traditional and new accounting methods. The case presents some techniques for identifying misleading practices, although they do not confirm the existence of fraud. Rather, the process highlights the need to delve deeper in the practice of revenue recognition and assess adherence to accounting standards. The case helps students understand the concept of accrual accounting and its ramifications on revenue recognition. Students will also learn about accrual ratios and discriminant models for identifying imprudent accrual practices that could impact earnings quality. After working through the case and assignment questions, students will be able to<br><br><ul><li>understand the logic of cash and accrual basis of accounting;</li><li>understand the concept of imprudent financial practices (also known as “financial shenanigans”);</li><li>analyze a company’s performance using the DuPont framework;</li><li>assess the quarterly financial performance of a company using basic financial ratios;</li><li>apply accrual ratios to reveal imprudent practices that can impact earnings quality; and</li><li>deploy a discriminant model to quantify the extent of discretionary accrual practices.</li></ul>