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Analyst questions the value of accounting measurement of earnings per share and stock option costs for equity valuation purposes.

2010 Healthcare Reform Act eliminates Medicare Part D subsidy and Caterpillar recognizes a $100 million change.

Analyst must identify role of management and actuarial judgment in measuring corporate post employment benefit obligations and assets.

Financial statements before and after restatement following revelation of fraud.

The exposure of the Kanebo Ltd. fraud raises questions of Japan's preparedness to adopt International Financial Reporting Standards.

The IASB and FASB propose new contingency loss recognition, measurement, and disclosure rules (A case). The B and C cases apply these proposals to British Petroleum's Mexican Gulf oil spill and Union Carbide's Bhophal gas discharge.

Anna Amphlett, a recent MBA graduate, was a newly hired financial analyst at Thor Industries, Inc., the largest manufacturer of recreation vehicles in the U.S. Amphlett was asked to benchmark the company's inventory management performance against other firms in the industry, and suggest areas where the company might eliminate waste and reduce costs. The company's Board of Directors, which now used free cash flows as a key performance indicator, believed that Thor could boost cash flows through lean management practices. Amphlett realized that comparing inventory management across companies was challenging, because inventory accounting methods differed across companies in the recreation vehicle industry.

The case describes the Risk-Reward framework that Morgan Stanley analysts use as a systematic approach to communicate a broader range of fundamental insights about a company rather than the traditional single point estimates. The goal of the framework is to focus the analysts' work on critical uncertainties and model a limited number of scenarios relevant to key investment debates. By outlining a bear, base and a bull case, the analysts can present the risk surrounding the expected outcome over the forecast horizon. The case outlines the key elements of the methodology and the process Morgan Stanley undertook to implement the framework on a world-wide basis starting in 2007, and discusses the challenges and opportunities that managers of the research department face as the framework is increasingly identified with their firm.

Technical note covering various aspects of accounting for stockholders' equity.

This case documents the evolution of UFIDA's management control system over a decade as it grew five-fold from a 325 million RMB to a 1.66 billion RMB company, while its staff grew by more than three-fold.

Rede Alta Velocidade, SA RAVE, the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials and lenders that the project is worth undertaking. It must also make a recommendation on the appropriate organizational form for the enterprise. Specifically it must determine the role of the Portuguese government in financing and operating the high-speed rail network, with options ranging from full development and management of the project by the public sector to completely private development and management. Lying in between these two polar cases were a variety of hybrid models often referred to as public-private partnerships (PPPs). Using data in the case, students have the opportunity to perform a benefit-cost analysis of the project. They also must think carefully about the optimal role of the government in a major new infrastructure project.

This is a spreadsheet of the Exhibits for case 111-081, restaurant Valuation: O'Charley's and AFC.

This case is a comparative analysis of the strategy, accounting, performance, and valuation for two restaurant chains alternatively having a company-owned versus franchising strategy. It requires students to identify these two different strategies, and the related impact on the financial statements, assessment of current performance, and choice of comparable firms and prediction of future performance to perform the valuation.

Supplement to 111029

The president of a small water filtration company is considering expanding his operations to include membrane biological reactors (MBRs). The topic of future-oriented decision-making using the differential cash flow is introduced. Students are asked to (1) qualitatively evaluate the filtration industry and decide whether this is the right time for the company to expand to MBRs; (2) perform a business size-up of the company and its competitors and determine whether the company is well positioned to expand at this time; (3) analyze the expansion opportunity qualitatively; (4) list all cash flows associated with the expansion and classify them as relevant (future, cash and different), and either recurring or one-time costs; (5) perform a differential analysis, with sensitivity where necessary and (6) determine the return on investment and the payback period.

The owner/operator of an ice cream store has an opportunity to expand his product line to include soft-serve ice cream. He needs to analyze the costs and benefits of purchasing either a new or used single-head or triple-head soft-serve ice cream machine. He also wants to continue growing the business and he wonders about the best way of going about it. Students are asked to (1) perform a business size-up; (2) analyze the addition of soft-serve ice cream from a qualitative standpoint; (3) determine which of the cash flows associated with the opportunity are relevant and which are recurring costs versus one-time costs; (4) perform a differential analysis to determine the ROI and payback period for the purchase of both new machines; (5) determine the ROI and payback period changes if a used machine is purchased; and (6) decide whether to purchase a soft-serve ice cream machine and, if so, which one.

Todovino sells Spanish wines through wine clubs and web sites. Founder-CEO Gonzalo Verdera has partnered with many companies to create cobranded wine clubs, but now he is pondering a joint venture with one of his rivals, a brick-and-mortar wine chain. Todovino would provide the online presence for the chain. Should Verdera help his rival? What are the risks and benefits for Todovino?

This case speculates how Japanese companies might implement IFRS, with particular emphasis on consolidation accounting.

Following International Financial Reporting Standards guidance company records a number of significant losses and a related deferred tax asset.