個案總覽

Discusses accounting rules for earnings per share measurement. The U.S. approach is described in detail and non-U.S. practices are briefly covered. A rewritten version of an earlier note.

Accounting for Income taxes under US-GAAP and IFRS. Analysis of income tax information in financial statements.

Perform financial ratio analysis to identify changes in IBM's business mix and profitability.

Spreadsheet Supplement for case 10032

New Profit, Inc. (NPI) is an innovative venture philanthropy fund. Founded by social entrepreneur Venessa Kirsch, NPI intends to raise large donations from individuals who wish to invest in nonprofit enterprises that could have a significant social impact and the capability to grow to scale. NPI searches and identifies such organizations, provides initial funding, monitors their performance, and then provides additional funding to enable them to become high-impact, nationwide organizations. NPI uses the Balanced Scorecard approach for measuring both its own performance and that of its portfolio companies. The Balanced Scorecard provides the language for the performance contract between NPI and its funders and board, and between NPI and its portfolio organizations.

Students are required to compute and explain the quality annual earnings per share figures and major differences between managing domestic and global operations.

A financial analyst is examining IBM's 1998 tax note to understand better how the company's 1998 tax note was determined. Teaching purpose: Illustrates deferred tax accounting.

Supplements the (A) case.

To allow students to compute and explain quarterly and annual earnings per share figures by using financial accounting standards No. 128.

IBM changes pension plan from a defined benefit plan to a cash-balance plan. Teaching purpose: To understand pension accounting.

The company's accounting for its seismic data library is questioned. Teaching Purpose: Inventory accounting.

Pre-Paid Legal Services' business model reveals two key issues--managing the sales force and sales growth and managing claims. Students analyze the economics of the business and consider how to measure firm performance, how to evaluate and reward the sales force, and what services to offer. The case also discusses a Fortune article criticizing Pre-Paid Legal's method of reporting sales force commissions. Students are asked to evaluate Fortune's analysis and to recommend potential responses by Pre-Paid Legal's management.

Describes a key concept in financial accounting: choosing an appropriate revenue recognition point. The accrual process requires revenue recognition and expense matching for reporting on the value creation process of companies. Describes the two key criteria for revenue recognition--realized and earned--and the conditions that must be met to satisfy these criteria. The use of the typical recognition point, when the product or service is delivered to the customer, is discussed as well as situations (e.g., the percentage of competition method) when revenue can be recognized before actual delivery. A rewritten version of an earlier note.

This note describes and interprets accounting standards for future employee benefits. Adoption of these new standards must occur no later than fiscal years beginning in 2000. These accounting rules will result in greater harmonization of Canadian and U.S. accounting standards. The note details the components of pension expense and provides an illustration of a public company's note disclosure. This disclosure is used to provide an explanation of how to interpret the data that is disclosed about pensions in a company's financial statements and notes.

This note describes and interprets accounting standards for future employee benefits. Adoption of these new standards must occur no later than fiscal years beginning in 2000. These accounting rules will result in greater harmonization of Canadian and U.S. accounting standards. The note details the components of pension expense and provides an illustration of a public company's note disclosure. This disclosure is used to provide an explanation of how to interpret the data that is disclosed about pensions in a company's financial statements and notes.

In order to fully appreciate Coca-Cola's profitability, financial risk, and operating risk, Jane Wilson, a security analyst, is considering preparing a consolidated financial statement for Coca-Cola analyzing Coca-Cola Enterprises as a fully consolidated entity.

Provides students with an overview of recent developments in the setting of accounting standards at a global level.

This case examines analysts' claim that Maxwell's stock was undervalued.

Explores Microsoft's overall financial reporting strategy by examining the company's treatment of two accounting issues--software capitalization and revenue recognition. For both issues, the company selects accounting methods that are relatively conservative. Also discusses the issue of managing analysts' expectations and Microsoft's tendency to provide analysts with very conservative expectations for the future. Provides a forum to discuss possible reasons for Microsoft's accounting and disclosure choices and also discusses the Securities and Exchange Commission's recent investigation into Microsoft's accounting practices.

A small CPA firm puts in a new performance measurement system, and profits increase by 350% in less than a year. This case illustrates the reasons for improved profitability as well as the sustainability of levels of growth, the opportunities, and the threats that await the company.