• Fairfax Financial: Fair and Friendly Accounting Treatments?

    With the issuance of Muddy Waters’ short report on Fairfax Financial Holdings Ltd. (Fairfax), Fairfax faced intensive scrutiny but continued to support its financial reporting decisions. The case investigates three accusations by Muddy Waters against Fairfax. The goal is to assess the merit of these claims against generally accepted accounting principles (GAAP). Along with the analysis surrounding the basis of accounting, this case gives students the opportunity to investigate short selling and the impacts of short reports on investor decision-making.
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